CHAPTER 200

HB 96 – FINAL VERSION

06/03/09 2067s

24Jun2009… 2143cofc

24Jun2009… 2344eba

2009 SESSION

09-0245

03/01

HOUSE BILL 96

AN ACT correcting certain references relating to municipal growth management, and allowing certain replacement structures to qualify for the community revitalization tax relief incentive.

SPONSORS: Rep. Patten, Carr 4; Rep. Cooney, Graf 7

COMMITTEE: Municipal and County Government

AMENDED ANALYSIS

This bill corrects certain statutory provisions relating to municipal growth management made obsolete by changes to RSA 674:23 enacted in HB 1260-LOCAL of the 2008 regular legislative session (2008, 360).

This bill also allows certain replacement structures to qualify for the community revitalization tax relief incentive.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06/03/09 2067s

24Jun2009… 2143cofc

24Jun2009… 2344eba

09-0245

03/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nine

AN ACT correcting certain references relating to municipal growth management, and allowing certain replacement structures to qualify for the community revitalization tax relief incentive.

Be it Enacted by the Senate and House of Representatives in General Court convened:

200:1 Local Water Resource Management and Protection Plans. Amend RSA 4-C:22, III to read as follows:

III. If a municipality determines there is an immediate need to develop or amend subdivision or site plan review regulations in the manner provided by RSA 675:6 or to prevent deterioration of a critical water resource through a [zoning ordinance or amendment] temporary moratorium or limitation on the issuance of building permits or the granting of subdivision or site plan approval in the manner provided by RSA 674:23, [II,] it may adopt such temporary measures for protection of water resources. Such measures shall be valid as provided in RSA 674:23[, III].

200:2 Power to Regulate Subdivisions. Amend RSA 674:35, III to read as follows:

III. The planning board shall not limit the number of building permits that may be issued except in accordance with an innovative land use control ordinance addressing timing incentives and phased development under RSA 674:21 and adopted under RSA 674:16; or an ordinance to regulate and control the timing of development, adopted under RSA 674:22; or an ordinance [to regulate growth via interim regulation] establishing a temporary moratorium or limitation on the issuance of building permits, adopted under RSA 674:23. This paragraph shall not be construed to limit the planning board's authority to deny a subdivision application on the basis that it is scattered or premature.

200:3 New Paragraph; Declaration of Public Benefit. Amend RSA 79-E:1 by inserting after paragraph II the following new paragraph:

II-a. In instances where a qualifying structure is determined to possess no significant historical, cultural, or architectural value and for which the governing body makes a specific finding that rehabilitation would not achieve one or more of the public benefits established in RSA 79-E:7 to the same degree as the replacement of the underutilized structure with a new structure, the tax relief incentives provided under this chapter may be extended to the replacement of an underutilized structure in accordance with the provisions of this chapter.

200:4 Declaration of Public Benefit. Amend RSA 79-E:1, III to read as follows:

III. Short-term property assessment tax relief and a related covenant to protect public benefit as provided under this chapter are considered to provide a demonstrated public benefit if they encourage substantial rehabilitation and use of qualifying structures, or in certain cases, the replacement of a qualifying structure, as defined in this chapter.

200:5 New Paragraph; Community Revitalization Tax Relief Incentive; Definitions; Replacement. Amend RSA 79-E:2 by inserting after paragraph I the following new paragraph:

I-a. “Replacement” means the demolition or removal of a qualifying structure and the construction of a new structure on the same lot.

200:6 New Paragraph; Community Revitalization Tax Relief Incentive; Definitions; Tax Increment Finance District. Amend RSA 79-E:2 by inserting after paragraph II the following new paragraph:

II-a. “Tax increment finance district” means any district established in accordance with the provisions of RSA 162-K.

200:7 Community Revitalization Tax Relief Incentive; Definitions; Tax Relief. Amend RSA 79-E:2, III to read as follows:

III. “Tax relief” means:

(a) For a qualifying structure, that for a period of time determined by a local governing body in accordance with this chapter, the property tax on a qualifying structure shall not increase as a result of the substantial rehabilitation thereof.

(b) For the replacement of a qualifying structure, that for a period of time determined by a local governing body in accordance with this chapter, the property tax on a replacement structure shall not exceed the property tax on the replaced qualifying structure as a result of the replacement thereof.

200:8 Community Revitalization Tax Relief Incentive. Amend RSA 79-E:4, I-II to read as follows:

I. An owner of a qualifying structure who intends to substantially rehabilitate or replace such structure may apply to the governing body of the municipality in which the property is located for tax relief. The applicant shall include the address of the property, a description of the intended rehabilitation or replacement, any changes in use of the property resulting from the rehabilitation or replacement, and an application fee.

II. Upon receipt of an application, the governing body shall hold a duly noticed public hearing to take place no later than 60 days from receipt of the application, to determine whether the structure at issue is a qualifying structure; whether [the] any proposed rehabilitation qualifies as substantial rehabilitation; and whether there is a public benefit to granting the requested tax relief and, if so, for what duration.

200:9 New Subparagraph; Community Revitalization Tax Relief Incentive. Amend RSA 79-E:4 by inserting after paragraph I the following new paragraph:

I-a. In order to assist the governing body with the review and evaluation of an application for replacement of a qualifying structure, an owner shall submit to the governing body as part of the application, a New Hampshire division of historical resources individual resource inventory form, prepared by a qualified architectural historian and a letter issued by the local heritage commission and if the qualifying structure is located within a designated historic district established in accordance with RSA 674:46, a letter from the historic district commission or, if such local commissions are not established, a letter issued by the New Hampshire division of historical resources that identifies any and all historical, cultural, and architectural value of the structure or structures that are proposed to be replaced and the property on which those structures are located. The application for tax relief shall not be deemed to be complete and the governing body shall not schedule the public hearing on the application for replacement of a qualifying structure as required under RSA 79-E:4, II until the inventory form and the letter, as well as all other required information, have been submitted.

200:10 Community Revitalization Tax Relief Incentive. Amend RSA 79-E:4, IV(a)(3) to read as follows:

(3) The governing body finds that the proposed use is consistent with the municipality’s master plan or development regulations[.]; and

(4) In the case of a replacement, the governing body specifically finds that the local heritage commission or historic district commission or, if such local commissions are not established, the New Hampshire division of historical resources has determined that the replaced qualifying structure does not possess significant historical, cultural, or architectural value, the replacement of the qualifying structure will achieve one or more of the public benefits identified in RSA 79-E:7 to a greater degree than the renovation of the underutilized structure, and the historical, cultural, or architectural resources in the community will not be adversely affected by the replacement. In connection with these findings, the governing body may request that the division of historical resources conduct a technical evaluation in order to satisfy the governing body that historical resources will not be adversely affected.

200:11 New Paragraph; Community Revitalization Tax Relief Incentive; Tax Increment Finance Districts. Amend RSA 79-E:4 by inserting after paragraph V the following new paragraph:

VI. Municipalities shall have no obligation to grant an application for tax relief for properties located within tax increment finance districts when the governing body determines, in its sole discretion, that the granting of tax relief will impede, reduce, or negatively affect:

(a) The development program or financing plans for such tax increment finance districts; or

(b) The ability to satisfy or expedite repayment of debt service obligations incurred for a tax increment financing district; or

(c) The ability to satisfy program administration, operating, or maintenance expenses within a tax increment financing district.

200:12 New Paragraph; Community Revitalization Tax Relief Incentive; Tax Relief Period. Amend RSA 79-E:5 by inserting after paragraph I the following new paragraph:

I-a. For the approval of a replacement of a qualifying structure, the governing body may grant such tax assessment relief for a period of up to 5 years, beginning only upon the completion of construction of the replacement structure. The governing body may, in its discretion, extend such additional years of tax relief as provided for under this section, provided that no such additional years of tax relief may be provided prior to the completion of construction of the replacement structure. The municipal tax assessment of the replacement structure and the property on which it is located shall not increase or decrease in the period between the approval by the governing body of tax relief for the replacement structure and the time the owner completes construction of the replacement structure and grants to the municipality the covenant to protect the public benefit as required by this chapter. The governing body may not grant any tax assessment relief under this chapter with respect to property and structures for which an election has been made for property appraisal under RSA 75:1-a.

200:13 Community Revitalization Tax Relief Incentive; Public Benefit. The introductory paragraph of RSA 79-E:7 is repealed and reenacted to read as follows:

In order to qualify for tax relief under this chapter, the proposed substantial rehabilitation must provide at least one of the public benefits, and the proposed replacement must provide one or more of the public benefits to a greater degree than would a substantial rehabilitation of the same qualifying structure, as follows:

200:14 Community Revitalization Tax Relief Incentive; Covenant to Protect Public Benefit. Amend RSA 79-E:8, I to read as follows:

I. Tax relief for the substantial rehabilitation or replacement of a qualifying structure shall be effective only after a property owner grants to the municipality a covenant ensuring that the structure shall be maintained and used in a manner that furthers the public benefits for which the tax relief was granted and as otherwise provided in this chapter.

200:15 Community Revitalization Tax Relief Incentive; Termination of Covenant; Reduction of Tax Relief; Penalty. Amend RSA 79-E:9, I to read as follows:

I. If the owner fails to maintain or utilize the building according to the terms of the covenant, or fails to restore, rebuild, or demolish the structure following damage or destruction as provided in RSA 79-E:8, III, the governing body shall, after a duly noticed public hearing, determine whether and to what extent the public benefit of the rehabilitation or replacement has been diminished and shall determine whether to terminate or reduce the tax relief period in accordance with such determination. If the covenant is terminated, the governing body shall assess all taxes to the owner as though no tax relief was granted, with interest in accordance with paragraph II.

200:16 Early Adoption by Municipalities. Any city or town that has adopted the provisions of RSA 79-E prior to the effective date of this section may adopt the provisions of this act relating to the extension of tax relief to the replacement of qualifying structures in accordance with the provisions of RSA 79-E:3. If a city or town that has adopted RSA 79-E prior to the effective date of this act desires to extend the tax relief benefits for replacement structures provided herein, such city or town must readopt RSA 79-E in its entirety or all of the provisions of this act pertaining to tax relief for replacement structures.

200:17 Effective Date.

I. Section 1-2 of this act shall take effect 60 days after its passage.

II. The remainder of this act shall take effect upon its passage.

Approved: July 15, 2009

Effective Date: I. Section 1-2 shall take effect September 13, 2009.

II. Remainder shall take effect July 15, 2009.