Bill Text: NH HB1470 | 2018 | Regular Session | Introduced


Bill Title: Repealing the timber tax.

Spectrum: Partisan Bill (Republican 9-0)

Status: (Introduced) 2018-02-08 - Inexpedient to Legislate: Motion Adopted Voice Vote 02/08/2018 House Journal 3 P. 12 [HB1470 Detail]

Download: New_Hampshire-2018-HB1470-Introduced.html

HB 1470-FN - AS INTRODUCED

 

 

2018 SESSION

18-2396

10/06

 

HOUSE BILL 1470-FN

 

AN ACT repealing the timber tax.

 

SPONSORS: Rep. Marple, Merr. 24; Rep. Itse, Rock. 10; Rep. Burt, Hills. 39; Rep. Hoell, Merr. 23; Rep. McGuire, Merr. 29; Rep. Howard, Belk. 8; Rep. J. Edwards, Rock. 4; Rep. Comeau, Carr. 5; Sen. Sanborn, Dist 9

 

COMMITTEE: Resources, Recreation and Development

 

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ANALYSIS

 

This bill repeals the normal yield tax on timber.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2396

10/06

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT repealing the timber tax.

 

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

 

1  Repeal of Timber Tax.  RSA 79, relative to forest conservation and taxation, is repealed.

2  Reference Deleted; Timber Harvesting in Wetlands.  Amend RSA 227:6, II to read as follows:

II.  Pursuant to RSA 482-A:3, V, [persons] inhabitants who have [complied with notice of intent to cut wood requirements under RSA 79:10, and who have] filed an appropriate notification of forest management activities having minimum wetlands impact with the department of environmental services and the department of resources and economic development, shall have satisfied the permitting requirements for minimum impact activities.

3  Reference Deleted; Deceptive Forestry Practices.  Amend RSA 227-J:15, III to read as follows:

III.  A person is guilty of a misdemeanor if, in the course of buying or selling a forest product as defined in RSA 227-G:4, VII, he or she recklessly fails to provide a written contract to the owner[, prior to the cutting from the owner's property any forest products which are subject to a notice of intent to cut as defined in RSA 79:10].  The contract shall be signed by both parties, specify the remuneration for the forest products to be cut, and the time in which remuneration shall be made.

4  Repeals.  The following are repealed:

I.  RSA 6:12, I(b)(13), relative to normal yield tax revenues.

II.  RSA  227-J:5, relative to notice of intent to cut and report of wood cut.

III.  RSA 482-A:3, V(d) and (e) relative to exemptions from excavation permits.

5  Effective Date.  This act shall take effect July 1, 2018.

 

LBAO

18-2396

10/30/17

 

HB 1470-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT repealing the timber tax.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [ X ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2019

FY 2020

FY 2021

FY 2022

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [    ] Other

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

   Expenditures

$0

$0

$0

$0

 

METHODOLOGY:

This bill would repeal the Timber Yield Tax under RSA 79; a tax of 10% on the stumpage value at the time of cutting which is assessed by local officials.  The Timber Tax is administered by the Department of Revenue Administration, Municipal and Property Division.

 

The Department of Revenue Administration is not able to predict the total municipal revenue from the Timber Tax in future years, but does have information for recent years.  The Timber Tax generated was $3,039,178 in FY 2014 and $3,593,931 in FY 2015.  All of the revenue is retained by local municipalities.  The Department indicates there would be no impact on State  revenue or the Department's expenditures.

 

The Judicial Branch indicates RSA 79, which would be repealed, includes a violation level offense if one does not comply with a cease and desist order issued against a timber operation not in compliance.  The violations may be enjoined by the superior court.  The Branch does not have information on how many fewer violation offenses would be brought in the district division of the circuit court or how many fewer actions for injunctive relief to enjoin violations would be filed in the superior court.  The Branch has provided the estimate average cost information for  processing both.  The estimated average cost to the Branch to process a violation offense in the district division of the circuit court is $48 for FY 2019 and $49 for FY 2020.  The injunction in the superior court would be classified as complex equity case with an estimated average cost of $740 in FY 2019 and $746 in FY 2020.  These amounts do not consider the cost of any appeals that may be taken following trial. It should also be noted that average case cost estimates for FY 2019 and FY 2020 are based on data that is more than ten years old and does not reflect changes to the courts over that same period of time or the impact these changes may have on processing the various case types.

 

The Judicial Council indicates this bill would not impact Judicial Council expenditures.

 

AGENCIES CONTACTED:

Department of Revenue Administration, Judicial Branch, Judicial Council, and Department of Justice

 

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