HB 293-FN – AS INTRODUCED
2011 SESSION
10/09
HOUSE BILL 293-FN
AN ACT relative to phasing out and repealing the exemption for water and air pollution control facilities from local property taxation.
SPONSORS: Rep. B. Patten, Carr 4; Rep. Kurk, Hills 7
COMMITTEE: Municipal and County Government
This bill phases out the exemption from property taxes for the appraised value of water and air pollution control facilities as determined by the department of environmental services over a 5-year period and repeals the exemption on March 31, 2016.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0635
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT relative to phasing out and repealing the exemption for water and air pollution control facilities from local property taxation.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Water and Air Pollution Control Facilities; Exemption; Phase Out Added. Amend RSA 72:12-a, V to read as follows:
V. The taxing authorities shall each year separately appraise and describe the facility and related real estate and cause such appraisal and description to appear in their inventory. In accordance with the provisions of this section, the taxing authority shall exempt from the taxes levied under this chapter the appraised value of the facility and any real estate necessary therefor, or the exempt percentage thereof[,] as determined by the department or as provided in paragraph V-a. The exemption period shall begin as of the April 1 next following the receipt of the department’s determination.
V-a. Prior to repeal on March 31, 2016, the exemption under this section for the appraised value of the facility and real estate necessary therefor, or the percentage thereof, shall be applied at the following reduced percentages for the corresponding property tax years:
(a) For the property tax year beginning April 1, 2012, the owner of the facility shall receive 80 percent of the determined exemption.
(b) For the property tax year beginning April 1, 2013, the owner of the facility shall receive 60 percent of the determined exemption.
(c) For the property tax year beginning April 1, 2014, the owner of the facility shall receive 40 percent of the determined exemption.
(d) For the property tax year beginning April 1, 2015, the owner of the facility shall receive 20 percent of the determined exemption.
2 Repeal. The following are repealed:
I. RSA 72:12-a, relative to the property tax exemption for water and air pollution control facilities.
II. RSA 72:12-b, relative to facilities exempted under prior law.
III. RSA 83-F:1, V(a), relative to the exclusion of exempt property from classification as utility property.
3 Effective Date.
I. Section 2 of this act shall take effect March 31, 2016.
II. The remainder of this act shall take effect April 1, 2011.
LBAO
11-0635
Revised 02/16/11
HB 293 FISCAL NOTE
AN ACT relative to phasing out and repealing the exemption for water and air pollution control facilities from local property taxation.
FISCAL IMPACT:
The Department of Revenue Administration states this bill will increase state education trust fund revenue by $400,000 in FY 2012, $800,000 in FY 2013, $1,200,000 in FY 2014, and $1,600,000 in FY 2015. This bill will have no fiscal impact on state, county, and local expenditures, or county and local revenue.
METHODOLOGY:
The Department of Revenue Administration states this bill phases out the exemption from property taxes for the appraised value of water and air pollution control facilities as determined by the Department of Environmental Services over a 5-year period, and repeals the exemption on March 31, 2016. The Department states total state revenue collected in the utility property tax was reduced by $1,942,530 in exempt pollution control property. The Department assumes the amount of lost revenue would continue to be approximately $2,000,000 per year if the exemption remained in place. Assuming a 5-year phase out of the exemption, the Department estimates state education trust fund revenue would decrease by approximately $400,000 in FY 2012, $800,000 in FY 2013, $1,200,000 in FY 2014, and $1,600,000 in FY 2015.
The New Hampshire Municipal Association states this bill will shift the local property tax burden amongst local property taxpayers, but does not impact the total amount collected in local property taxes.