CHAPTER Rev 500  EXCAVATION TAX AND TAXATION OF EXCAVATION AREA

 

PART Rev 501  DEFINITIONS

 

          Rev 501.01  “Department” means the department of revenue administration.

 

Source.  #1517 and 1518, as amd by #1555 and 1556 eff 3-27-80; ss by #1726, eff 3-4-81; ss by #2215, eff 12-19-82; ss by #2852, eff 9-24-84; rpld by #5356, eff 3-16-92

 

New.  #6748, eff 5-19-98; ss by #7381, eff 10-24-00; ss by #7860, eff 3-31-03, EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11; ss by #12834, eff 7-25-19

 

          Rev 501.02  "Earth" means “earth” as defined in RSA 155-E:1, I namely "sand, gravel, rock, soil or construction aggregate produced by quarrying, crushing or any other mining activity or such other naturally-occurring unconsolidated materials that normally mask the bedrock." Earth does not include dimension stone as defined in RSA 155-E:1, IV.

 

Source.  #7381, eff 10-24-00; ss by #7860, eff 3-31-03, EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11 (from Rev 501.01); ss by #12834, eff 7-25-19

 

          Rev 501.03  "Excavation" means “excavation” as defined in RSA 155-E:1, II namely “a land area which is used, or has been used, for the commercial taking of earth, including all slopes.” Excavation does not include any site of an excavation which ceased commercially useful operation prior to August 24, 1977, or any reclaimed area.

 

Source.  #7381, eff 10-24-00; ss by #7860, eff 3-31-03, EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11 (from Rev 501.02); ss by #12834, eff 7-25-19

 

          Rev 501.04  "Excavation area" means “excavation area” as defined in RSA 155-E:1, VI namely “the surface area within an excavation site where excavation has occurred or is eligible to occur under the provisions of this chapter.”

 

Source.  #7381, eff 10-24-00; ss and moved by #7860, eff 3-31-03 (formerly Rev 501.03) EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11 (from Rev 501.03); ss by #12834, eff 7-25-19

 

          Rev 501.05  "Excavating" means extracting earth from its state of natural repose by any method, such as dredging, blasting, digging out and removing, or forming a cavity or a hole in any land area. Excavating includes excavate.

 

Source.  #7381, eff 10-24-00; ss by #7860, eff 3-31-03, EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11 (from Rev 501.04); ss by #12834, eff 7-25-19

 

          Rev 501.06  "Incidental excavation" means any excavation of earth that does not require a permit pursuant to RSA 155-E:2-a.

 

Source.  #7381, eff 10-24-00; ss and moved by #7860, eff 3-31-03 (formerly Rev 501.04), EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11 (from Rev 501.05); ss by #12834, eff 7-25-19

 

          Rev 501.07  "Local ordinances" means the local regulations of excavation set forth pursuant to RSA 155-E along with local reclamation standards that were conditions of a permit issued under RSA 155-E.

 

Source.  #7381, eff 10-24-00; ss and moved by #7860, eff 3-31-03 (formerly Rev 501.05), EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11 (from Rev 501.06); ss by #12834, eff 7-25-19

 

          Rev 501.08  “Municipal assessing officials” means those charged by law with the duty of assessing taxes in the city, town, or unincorporated place.

 

Source.  #7381, eff 10-24-00; ss and moved by #7860, eff 3-31-03 (formerly Rev 501.06), EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11; ss by #12834, eff 7-25-19

 

          Rev 501.09  "Municipality" means a city, town, or unincorporated place.

 

Source.  #7381, eff 10-24-00; ss and moved by #7860, eff 3-31-03 (formerly Rev 501.07), EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11 (from Rev 501.07); ss by #12834, eff 7-25-19

 

          Rev 501.10  "Original" means the first filing by an owner, in a tax year, of the Form PA-38, “Notice of Intent to Excavate”, with the assessing officials in the municipality in which the excavating is to take place.

 

Source.  #7860, eff 3-31-03 (formerly Rev 501.08), EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11 (from Rev 501.08); ss by #12834, eff 7-25-19

 

          Rev 501.11  “Owner” means “owner” as defined in RSA 72-B:2, VIII namely:

 

          (a)  “Any person who owns the land upon which earth is excavated;

 

          (b)  A previous owner who retains earth excavation rights to the land, or any person who has purchased earth excavation rights, and has registered a claim with the registry of deeds; or

 

          (c)  Any person who has purchased excavated earth or excavation rights on public lands, or removes earth from a public right-of-way.”

 

Source.  #7860, eff 3-31-03 (formerly Rev 501.09) EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11; ss by #12834, eff 7-25-19

 

          Rev 501.12  "Reclaimed area" means any excavation area that has been brought into compliance with applicable local ordinances and reclamation standards as set forth pursuant to RSA 155-E.

 

Source.  #9926, eff 5-18-11 (from Rev 501.09); ss by #12834, eff 7-25-19

 

          Rev 501.13  "Stockpile" means excavating earth and placing the earth into a storage pile or area for future use.

 

Source.  #9926, eff 5-18-11 (from Rev 501.10); ss by #12834, eff 7-25-19

 

          Rev 501.14  "Supplemental" means a subsequent filing by an owner, in a tax year, of the Form PA-38, “Notice of Intent to Excavate”, with the assessing officials in the municipality in which the excavating is to take place to make corrections or additions to the information contained in the original Form PA-38.

 

Source.  #9926, eff 5-18-11 (from 501.11); ss by #12834, eff 7-25-19

 

PART Rev 502  FILING OF FORMS

 

          Rev 502.01  Filing Form PA-38, Notice of Intent to Excavate.

 

          (a)  Prior to excavating, every owner intending to excavate earth, unless specifically exempt pursuant to RSA 72-B:1, I, shall complete and file a Form PA-38, “Notice of Intent to Excavate”, with the municipal assessing officials in the municipality where the excavating will occur.

 

          (b)  When property for which a Form PA-38 has been filed, is sold during a tax year, the acquiring property owner shall file an original Form PA-38, if excavating will continue.

 

          (c)  If property where excavating will occur is located in more than one municipality, a separate original Form PA-38 shall be filed with each municipality.

 

          (d)  A separate original Form PA-38 shall be filed for each separate tract of land, as identified by the municipal tax maps, where the excavating will occur.

 

          (e)  An owner who is not exempt from the $100 administration and enforcement fee pursuant to RSA 72-B:1, I., (c), shall include a separate check for $100 made payable to the State of New Hampshire with each original Form PA-38 or each supplemental notice of intent to excavate filed.

 

          (f)  Except for any entity described in RSA 72-B:1, I (e), any person who excavates earth on private or public lands or removes earth from a public right-of-way unless specifically exempt pursuant to RSA 72-B:1, I, shall file a Form PA-38 and the $100 administration and enforcement fee with the assessing officials in each municipality where the excavating will occur.

 

          (g)  Upon receipt of a Form PA-38, municipal assessing officials, shall notify the owner(s), as identified on the Form PA-38, of the certification requirements in Rev 503.01.

 

Source.  #1668, eff 11-18-80; ss by #2215, eff 12-19-82; ss by #2852, eff 9-24-84; rpld by #5356, eff 3-16-92

 

New.  #6748, eff 5-19-98; ss by #7381, eff 10-24-00; ss by #7860, eff 3-31-03, EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11; ss by #12834, eff 7-25-19

 

     Rev 502.02  Filing Form PA-39, Report of Excavated Material.

 

          (a)  A Form PA-39, “Report of Excavated Material”, shall be completed and filed with the municipal assessing officials and with the department by the owner(s) for each original Form PA-38 that has been filed in the municipality.

 

          (b)  If property where excavation will occur is located in more than one municipality, a separate Form PA-39 shall be filed with each municipality.

 

          (c)  In the event that no earth was excavated the owner shall file Form PA-39 so stating.

 

          (d)  A Form PA-39 shall be filed no later than 30 days following:

 

(1)  The completion of the excavating if an excavation ceases operation prior to March 31st; or

 

(2)  The sale of the property.

 

          (e)  If the excavating is still in progress at the end of a tax year, March 31st, a Form PA-39 shall be filed no later than the following April 15th for all earth excavated during the tax year inclusive of March 31st.

 

Source.  #1668, eff 11-18-80; ss by #2215, eff 12-19-82; ss by #2852, eff 9-24-84; rpld by #5356, eff 3-16-92

 

New.  #6748, eff 5-19-98; ss by #7381, eff 10-24-00; ss by #7860, eff 3-31-03, EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11; ss by #12834, eff 7-25-19

 

PART Rev 503  CERTIFICATION BY MUNICIPAL ASSESSING OFFICIALS

 

          Rev 503.01  Certification of Form PA-38 by Municipal Assessing Officials.

 

          (a)  Pursuant to RSA 72-B:8, the municipal assessing officials shall have 30 days after receipt of a Form PA-38 from the owners to determine that:

 

(1)  All owners of record have signed Form PA-38;

 

(2)  The open un-reclaimed excavation area is not under current use assessment;

 

(3)  Form PA-38 is complete; and

 

(4)  Any excavation tax bond required, pursuant to RSA 72-B:5, has been received by the municipal assessing officials.

 

          (b)  If the municipal assessing officials determine that a Form PA-38 is incomplete, does not have the required administration and enforcement fee, or, that the owner is not in compliance with RSA 72-B:5, RSA 155-E, RSA 485-A:17, RSA 79-A, or applicable local ordinances, they:

 

(1)  May decline to sign the Form PA-38; and

 

(2)  Shall:

 

a.  Notify the owner of any deficiency in writing within 30 days of the receipt of Form PA-38;

 

b.  Retain a photocopy of the Form PA-38 and return the original Form PA-38, along with any administrative and enforcement fee to the owner;

 

c.  Notify the owner that no excavation is to occur without a Form PA-38 signed by the municipal assessing officials;

 

d.  Specify the basis of each deficiency in the notice;

 

e.  Provide the owner with the necessary information to comply and correct each deficiency; and

 

f.  Provide to the department copies of all notices sent to the owner within 30 days of the receipt of the original Form PA-38.

 

          (c)  If the municipal assessing officials determine that Form PA-38 meets the requirements in Rev 503.01(a), they shall indicate their certification by signing the Form PA-38 and shall assign an operation number.

 

          (d)  The municipal assessing officials shall, within 30 days of signing the Form PA-38, notify the municipal tax collector that a Form PA-38 has been filed and that the property is subject to a tax lien pursuant to RSA 72-B:7.

 

Source.  #7381, eff 10-24-00; ss by #7860, eff 3-31-03, EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11; ss by #12834, eff 7-25-19

 

PART Rev 504  DISTRIBUTION OF FORMS

 

          Rev 504.01  Distribution of Form PA-38, Notice of Intent to Excavate and Administrative and Enforcement Fee.  The municipal assessing officials shall distribute the Form PA-38 and the administrative and enforcement fee as follows:

 

          (a)  The first page of the Form PA-38 shall be retained by the municipal assessing officials;

 

          (b)  The second and third pages of the Form PA-38, shall be forwarded to:

 

New Hampshire Department of Revenue Administration

Taxpayer Services Division

PO Box 637

Concord, NH 03302-0637;

 

          (c)  The fourth page of the Form PA-38 shall be returned to the owner; and

 

          (d)  The administrative and enforcement fee, if required, shall be remitted to the department with the pages listed in (b) above.

 

Source.  #7381, eff 10-24-00; ss by #7581, eff 10-27-01; ss by #7860, eff 3-31-03, EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11 (from Rev 505.01); ss by #12834, eff 7-25-19

 

     Rev 504.02  Distribution of Form PA-39, Report of Excavated Material.

 

          (a)  Upon receipt of the original Form PA-38 from the municipal assessing officials, the department shall mail the owner a Form PA-39, “Report of Excavated Material”, on which the department has entered the following information obtained from the original Form PA-38:

 

(1)  Tax year;

 

(2)  Operation number assigned by the municipal assessing officials;

 

(3)  Owner's name and address;

 

(4)  Municipality where the excavation shall occur; and

 

(5)  Tax map block and lot number of the parcel where the excavation will take place.

 

          (b) Upon completion of Form PA-39, the owner shall distribute the copies as follows:

 

(1)  The first page of the Form PA-39 shall be forwarded to the municipal assessing officials in the municipality where the excavation took place;

 

(2)  The second page of the Form PA-39 shall be forwarded to:

 

New Hampshire Department of Revenue Administration

Municipal and Property Division

PO Box 487

Concord, NH 03302-0487;

 

(3)  The third page of the Form PA-39 shall be retained by the owner; and

 

(4)  The fourth page of the Form PA-39 shall be provided to the excavator.

 

Source.  #7381, eff 10-24-00; ss by #7860, eff 3-31-03, EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11 (from Rev 505.02); ss by #12834, eff 7-25-19

 

            Rev 504.03  Distribution of Form PA-40, Excavation Tax Certificate.

 

            (a)  The department, upon receipt of a completed Form PA-38, shall provide the owner with a Form PA-40, “Excavation Tax Certificate”.

 

            (b)  The owner shall post and maintain the Form PA-40 in a conspicuous place within the excavation area.

 

Source.  #7381, eff 10-24-00; ss by #7860, eff 3-31-03, EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11 (from Rev 505.03); ss by #12834, eff 7-25-19

 

PART Rev 505  PROPERTY TAXATION OF EXCAVATIONS AND EXCAVATION AREAS

 

          Rev 505.01  Property Taxation.  Excavations as defined in RSA 155-E:1, II, and excavation areas as defined in RSA 155-E:1, VI, shall be taxed as real property pursuant to RSA 72:6 independent of any earth contained therein.

 

Source.  #7381, eff 10-24-00; ss by #7860, eff 3-31-03, EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11; ss by #12834, eff 7-25-19

 

Rev 505.02  Exemptions.

 

(a)  Incidental excavation, as defined in Rev 501.06, shall not be considered part of an excavation area.

 

(b)  The value of the earth contained within the excavation area shall not be included in the assessment of the real property pursuant to RSA 72:6.

 

Source.  #7381, eff 10-24-00; ss by #7860, eff 3-31-03, EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11 (from Rev 506.01); ss by #12834, eff 7-25-19

 

          Rev 505.03  Excavation on Public Lands.  An excavation area conducted upon public lands shall be assessed pursuant to RSA 72:23, I(b).

 

Source.  #7381, eff 10-24-00; ss by #7860, eff 3-31-03, EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11 (from Rev 506.02); ss by #12834, eff 7-25-19

 

PART Rev 506  EXCAVATION TAX

 

          Rev 506.01  Exemptions.

 

          (a)  Excavation of earth where the total volume excavated does not exceed 1000 cubic yards during the tax year shall be exempt from the excavation tax.

 

          (b)  Any excavation on public lands or a public right-of-way, where the earth excavated will be used exclusively in the construction or alteration of the public land or public right-of-way, shall be exempt from the excavation tax provided that the excavated earth is:

 

(1)  Not sold, bartered, or given away; and

 

(2)  Under the ownership and jurisdiction of:

 

a.  The federal government;

 

b.  The state government;

 

c.  Municipalities; or

 

d.  Counties.

 

Source.  #7381, eff 10-24-00; ss by #7860, eff 3-31-03, EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11 (from Rev 507.01); ss by #12834, eff 7-25-19

 

          Rev 506.02  Excavation on Public Lands or Public Rights of Way.

 

          (a)  Any person who excavates earth from public lands or a public right of way shall be assessed the excavation tax if such person:

 

(1)  Retains excavation rights to the land;

 

(2)  Purchases excavation rights to the land; or

 

(3)  Sells, barters, or gives away the excavated earth, or retains ownership of the excavated earth.

 

Source.  #7381, eff 10-24-00; ss by #7860, eff 3-31-03 EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11; ); ss by #12834, eff 7-25-19

 

          Rev 506.03  Excavation Exceeding the Original Estimate of 1000 Cubic Yards or Less.  Any excavation which exceeds 1000 cubic yards and was originally exempted from the excavation tax and the enforcement fee shall be subject to the excavation tax on all of the earth excavated during the tax year and the enforcement fee, pursuant to RSA 72-B:8-a.

 

Source.  #9926, eff 5-18-11 (from Rev 507.02); ); ss by #12834, eff 7-25-19

 

          Rev 506.04  Stockpiling of Earth.  Stockpiling excavated earth, or processing excavated earth for the production of earth products, shall not be exempt from the excavation tax for the tax year in which the earth was extracted from its state of natural repose.

 

Source.  #9926, eff 5-18-11 (from Rev 507.03); ss by #12834, eff 7-25-19

 

          Rev 506.05  Other Transactions of Earth.  Earth that is given away, bartered or exchanged shall not be exempt from the excavation tax for the tax year in which it was excavated.

 

Source.  #7381, eff 10-24-00; ss by #7860, eff 3-31-03 EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11 (from Rev 507.04); ss by #12834, eff 7-25-19

 

          Rev 506.06  Value Added Products.  Earth that is used by the owner in the production of asphalt, concrete, or other construction products shall be taxable in the year in which the earth was extracted from its state of natural repose.

 

Source.  #9926, eff 5-18-11; ss by #12834, eff 7-25-19

 

PART Rev 507  BONDING

 

          Rev 507.01  Bonding of the Excavation Tax.  Bonding, pursuant to RSA 72-B:5, shall only apply to a bond or other securities necessary to secure payment of taxes imposed by RSA 72-B.

 

Source.  #7381, eff 10-24-00; ss by #7860, eff 3-31-03, EXPIRED: 3-31-11

 

New.  #9926, eff 5-19-11 (from Rev 508.01); ss by #12834, eff 7-25-19

 

PART Rev 508  APPEALS

 

          Rev 508.01  Appealing the Excavation Tax Assessment.  Any owner may appeal their excavation tax assessment pursuant to RSA 72-B:13.

 

Source.  #7381, eff 10-24-00; ss by #7860, eff 3-31-03, EXPIRED: 3-31-11

 

New.  #9926, eff 5-18-11 (from Rev 509.01); ss by #12834, eff 7-25-19

 

APPENDIX

 

Rule

Specific State Statute the Rule Implements

Rev 501.01

RSA 72-B:2

Rev 501.02

RSA 155-E:1,I

Rev 501.03

RSA 155-E:1,II

Rev 501.04

RSA 72-B:18

Rev 501.05

RSA 72-B:2, VI

Rev 501.06

RSA 72-B:18

Rev 501.07

RSA 155-E:5; RSA 155-E:11

Rev 501.08

RSA 72-B:2, II

Rev 501.09

RSA 72-B:2; RSA 72-B:18

Rev 501.10

RSA 72-B:18

Rev 501.11

RSA 72-B:2, VIII

Rev 501.12

RSA 72-B:2, IX

Rev 501.13

RSA 72-B:18

Rev 501.14

RSA 72-B:18

Rev 502.01

RSA 72-B:8; RSA 72-B:8-a; RSA 72-B:16

Rev 502.02

RSA 72-B:9

Rev 503.01

RSA 72-B:8; RSA 72-B:18

Rev 504.01

RSA 72-B:8

Rev 504.02

RSA 72-B:9

Rev 504.03

RSA 72-B:8

Rev 505.01

RSA 72-B:1, II

Rev 505.02

RSA 72-B: 1

Rev 505.03

RSA 72-B: 1

Rev 506.01

RSA 72-B:1, I

Rev 506.02

RSA 72-B:2, VII

Rev 506.03

RSA 72-B:18

Rev 506.04

RSA 72-B:18

Rev 506.05

RSA 72-B:18

Rev 506.06

RSA 72-B:18

Rev 507.01

RSA 72-B:5

Rev 508.01

RSA 72-B:13