HB 680-FN-LOCAL - AS INTRODUCED

2015 SESSION

15-0809

10/09

HOUSE BILL 680-FN-LOCAL

AN ACT relative to establishing the rate for and the collection of the education property tax and establishing a homestead exemption from the education property tax.

SPONSORS: Rep. Shattuck, Hills 1

COMMITTEE: Ways and Means

ANALYSIS

This bill establishes the rate of the statewide education tax at $8 per 1,000 of the value of taxable property and transfers the authority to collect the education property tax from the municipalities to the department of revenue administration. This bill establishes a homestead exemption from the education property tax for the first $250,000 of assessed value of homestead property. The bill also requires an annual transfer of $150,000,000 from the education trust fund to the general fund.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

15-0809

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Fifteen

AN ACT relative to establishing the rate for and the collection of the education property tax and establishing a homestead exemption from the education property tax.

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

1 Education Property Tax; Rate Established; Collection by Department of Revenue Administration. RSA 76:3 is repealed and reenacted to read as follows:

76:3 Education Property Tax.

I. Beginning July 1, 2015, and every fiscal year thereafter, an annual education tax at the uniform rate of $8 on each $1,000 of the value of taxable property is hereby imposed on all persons and property taxable pursuant to RSA 76:8, except property subject to tax under RSA 82 and RSA 83-F.

II. The commissioner of the department of revenue administration shall determine the state education tax owed by each taxpayer under this section and bill each taxpayer for ½ the amount payable by July 1 and ½ the amount payable by December 1 of each year.

III.(a) The commissioner of the department of revenue administration shall send a bill to the taxpayer for all taxes, interest, additions to tax, and penalties imposed by this section. The taxpayer shall remit the amount due the state to the department of revenue administration. The state treasurer shall deposit all taxes, interest, additions to tax, and penalties collected in the education trust fund established under RSA 198:39.

(b) The tax bill sent to each taxpayer of the education property tax shall include the application and explanatory information for the education property tax homestead exemption under RSA 76-A.

IV. The commissioner may institute actions in the name of the state to recover any tax, interest on tax, additions to tax, or the penalties imposed by this section.

V. In the collection of the tax imposed by this section, the commissioner may use all of the powers granted to tax collectors under RSA 80 for the collection of taxes. The commissioner shall also have all of the duties imposed upon the tax collectors by RSA 80 that are applicable to the commissioner. The provisions of RSA 80:26 shall apply to the sale of land for the payment of taxes due under this chapter, and the state treasurer is authorized to purchase the land for the state. If the state purchases the land, the state treasurer shall certify the purchase to the governor, and the governor shall draw a warrant for the purchase price out of any money in the treasury not otherwise appropriated.

VI. Appeals regarding valuation of property shall be made to the board of tax and land appeals or the superior court of the county in which the taxpayer resides in the manner prescribed in RSA 76:16-a and RSA 76:17. Appeals other than appeals of valuation shall be made according to the procedure and subject to the time limits provided for other taxes administered by the department under RSA 21-J.

VII. Taxes not paid when due shall be subject to appropriate penalties and interest under RSA 21-J.

2 Commissioner’s Assessments. RSA 76:8 is repealed and reenacted to read as follows:

76:8 Commissioner’s Assessments; State Education Property Tax; Local School Taxes Authorized.

I. The commissioner shall utilize assessment data acquired from the towns, cities, and places in this state having property subject to property tax under RSA 72 as appraised under RSA 75, and adjust the assessment of each property using the current equalization ratio for each such town, city, or place in which it is located as determined pursuant to RSA 21-J:9-a. The equalized assessed value for each property subject to tax shall be used in the calculation of tax bills under RSA 76:3.

II. Municipalities are authorized to assess local property taxes necessary to fund school district appropriations not funded by the education tax, by distributions from the education trust fund under RSA 198:39, or by other revenue sources.

3 Education Trust Fund; Source of Funds. Amend RSA 198:39, I(k) to read as follows:

(k) Education property taxes paid over to the state treasurer by the department of revenue administration pursuant to RSA 76:3.

(l) Any other moneys appropriated from the general fund.

4 Determination of Adequate Education Grants. Amend RSA 198:41, I to read as follows:

I. Except for municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the [department of education shall determine the total education grant for the municipality as follows:

(a) Add the per pupil cost of providing the opportunity for an adequate education for which each pupil is eligible pursuant to RSA 198:40-a, I-III, and from such amount;

(b) Subtract the amount of the education tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:9 for the next tax year] municipality’s total education grant shall be the amount calculated in RSA 198:40-a.

5 Reference Change. Amend RSA 198:41, II(b) to read as follows:

(b) The total amount paid for items of current education expense as determined by the department of education [minus the amount of the education property tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:9 for the next tax year].

6 New Chapter; Education Property Tax Homestead Exemption. Amend RSA by inserting after chapter 76 the following new chapter:

CHAPTER 76-A

EDUCATION PROPERTY TAX HOMESTEAD EXEMPTION

76-A:1 Definition. In this chapter, “homestead” or “homestead property” means the dwelling owned by a claimant, or in the case of a multi-unit dwelling, the portion of the dwelling, which is used as the claimant’s principal place of residence and the claimant’s domicile for purposes of RSA 654:1. “Homestead” shall not include land and buildings taxed under RSA 79-A, 79-B, or 79-C or land and buildings or the portion of land and buildings rented or used for commercial or industrial purposes. In this section, dwelling owner includes one or more joint tenants or tenants in common and a trustee of a grantor trust pursuant to sections 671-679 of the United States Internal Revenue Code.

76-A:2 Homestead Exemption.

I. The first $250,000 of equalized assessed value of the homestead of a qualifying taxpayer shall be exempt from the education property tax due under RSA 76:3.

II. A qualifying taxpayer is an individual who:

(a) On April 1 owns a homestead subject to the education property tax; and

(b) Files a claim certifying, under the pains and penalties of perjury, that such taxpayer qualifies under subparagraph (a) with the department of revenue administration, or local designated official, if on or before April 15 of the current tax year. Claims filed after April 15 each year shall not be considered timely for the current year, but shall be considered filed for the following tax year. The commissioner of the department of revenue administration may, for good cause, accept late filings of homestead exemption claims.

III. Upon receipt of a claim for a homestead exemption under this section, the department of revenue administration shall review the claim and grant or deny the claim in writing to the applicant by May 15 following receipt of the claim. Failure of the department to respond shall constitute acceptance of the claim. Accepted claims shall continue from year to year without necessity for refiling unless there is a change in ownership or use of the property. Accepted claims may at any time be revoked for any tax year or portion thereof following the occurrence of one or more of the following events:

(a) The claimant fails to file a return as required under this section within one year following the close of the tax year for which the exemption is claimed; or

(b) The claimant is no longer qualified under the definition of homestead in RSA 76-A:1 due to a change in ownership or use.

IV. Claims shall be made on forms prescribed by the commissioner of the department of revenue administration, and may be provided to designated local officials in each municipality.

V. The following shall apply to the determination of the amount of property value exempted relative to a homestead which is part of a single tax parcel upon which is located either other dwelling units not owned or occupied by the taxpayer or significant nonresidential use of the property:

(a) If the tax parcel includes property used for business or other nonresidential use, the exempt homestead amount shall include, in addition to the actual homestead, the lesser of 1,000 square feet of floor area of such nonresidential use property or $25,000 of equalized value, except that family owned and operated farms which are not owned by a business entity or held in the name of a non-natural person shall be eligible for the full homestead exemption on all property not assessed under RSA 79-A, RSA 79-B, or RSA 79-C.

(b) If the tax parcel includes other dwellings or dwelling units, the value of the homestead exemption relative to the claimed homestead shall be determined by the assessing official as follows:

(1) Divide the value of the tax parcel by the number of dwelling units; or

(2) If the square footage of each dwelling unit is known, multiply the value of the tax parcel by a fraction consisting of the square footage of the claimed homestead divided by the total square footage of all dwelling units in the parcel.

(c) In lieu of the method of determining the amount of homestead exemption in subparagraph (a) or (b), a taxpayer may present competent evidence of a greater proportion of exempt value to the assessing officials. In such instance the taxpayer bears the burden of proving the claimed exemption by the preponderance of the evidence.

(d) The commissioner of the department of revenue administration shall adopt rules, pursuant to RSA 541-A, relative to the implementation and enforcement of the homestead exemption under this chapter.

VI. Only one homestead exemption per married couple may be claimed in any tax year.

VII. A taxpayer who knowingly files a false or fraudulent homestead exemption claim shall be guilty of a class A misdemeanor.

7 New Paragraph; Education Trust Fund; Transfer to General Fund. Amend RSA 198:39 by inserting after paragraph II the following new paragraph:

III. The state treasurer shall on June 30 of each year transfer from the available balance in the education trust fund, excluding any sums received under subparagraph I(h), the sum of $150,000,000 to be credited to the general fund.

8 Effective Date. This act shall take effect April 1, 2015.

LBAO

15-0809

Revised 02/03/15

HB 680-FN-LOCAL FISCAL NOTE

AN ACT relative to establishing the rate for and the collection of the education property tax and establishing a homestead exemption from the education property tax.

FISCAL IMPACT:

METHODOLOGY: