TITLE V
TAXATION

CHAPTER 75
APPRAISAL OF TAXABLE PROPERTY

Section 75:1-a

    75:1-a Residential Property Subject to Housing Covenant Under the Low-Income Housing Tax Credit Program. –
The appraisal for property tax purposes on multifamily residential rental property which is governed by section 42 of the Internal Revenue Code and which is subject to a recorded housing subsidy covenant that restricts tenant eligibility and rents shall, upon the affirmative request of the taxpayer, be determined under this section. A copy of the recorded land use restriction required by section 42 of the Internal Revenue Code or other low income rental use restriction covenant required by the New Hampshire housing finance authority, is sufficient proof that the property is eligible for assessment under this section.

[Paragraph I effective until January 1, 2027; see also paragraph I set out below.]


I. To make an election for an appraisal of property subject to a housing covenant under the low-income housing tax credit program, the taxpayer shall, by October 1 preceding the tax year for which the election is sought, provide written notice to the municipality of the taxpayer's election to be assessed under this section, using a form prepared by the department of revenue administration. A property that as of April 1 of the tax year is under construction shall not be eligible to apply for assessment under this section.

[Paragraph I effective January 1, 2027; see also paragraph I set out above.]


I. To make an election for an appraisal of property subject to a housing covenant under the low-income housing tax credit program, the taxpayer shall, on or before April 15, provide written notice to the municipality of the taxpayer's election to be assessed under this section, using a form prepared by the department of revenue administration. A property that as of April 1 of the tax year is under construction shall not be eligible to apply for assessment under this section.
II. When an election is made, the property shall be assessed under this section for the next 10 tax years, provided the property remains subject to the housing covenant under the low-income housing tax credit program. A property subject to assessment under this section shall not be granted property tax exemption under RSA 72:23.
III. A taxpayer who makes an election under this section shall, by April 15 of each applicable tax year, provide the assessor with the relevant information described in this section, using a form prepared by the department of revenue administration.
IV. Financial information that is required from the taxpayer under this section shall be the audited financial statements from the prior calendar year as prepared by a third-party certified public accountant. For properties with financial data for part of the prior calendar year, the assessor shall use the partial data and the projected operating budget for the first full year of operations as provided by the New Hampshire housing finance authority to extrapolate a full year's estimated operation financials.
V. A taxpayer making an election under this section shall be liable for taxes on the property in an amount equal to 10 percent of the actual rental income and other income.
VI. The assessed value shall be calculated in a manner consistent with this section.
VII. The assessed valuation of residential rental property subject to a housing covenant under the low-income housing tax credit program shall not take into consideration the value of intangible assets including, but not limited to, government subsidies or grants, below market rate mortgage financing, and tax credits where such subsidies are used to offset project development expenses in order to allow for restricted rents. The assessed valuation shall not take into consideration the actual cost of acquisition or construction of the project.
VIII. In this section, "other income" means income that is attributable to the real estate and is ordinary and recurring, including laundry or vending income. Interest on restricted reserve funds shall be considered other income. For properties with nonresidential space that is or can be rented as commercial space to third parties, market rent, considering any legal, market, or covenant restrictions, shall be attributed to such space and shall be considered as other income. Common area space within a property that are used primarily to benefit the property's residents or to provide services to the property's residents shall not be separately assessed and no income shall be imputed to such space.

Source. 2008, 390:5. 2010, 40:1-6, eff. June 30, 2010. 2025, 120:1, eff. July 1, 2025. 2026, 207:1, eff. Jan. 1, 2027.