Bill Text: NH HB1473 | 2018 | Regular Session | Introduced
Bill Title: Relative to the timber yield tax.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2018-06-12 - Signed by Governor Sununu 06/08/2018; Chapter 182; Eff. 9/1/2018 [HB1473 Detail]
Download: New_Hampshire-2018-HB1473-Introduced.html
HB 1473-FN - AS INTRODUCED
2018 SESSION
18-2421
05/10
HOUSE BILL 1473-FN
AN ACT relative to the timber yield tax.
SPONSORS: Rep. Spang, Straf. 6
COMMITTEE: Resources, Recreation and Development
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ANALYSIS
This bill permits a municipality to waive the yield tax on land owned by the municipality. The bill also clarifies the procedure for filing a notice of intent to cut and the subsequent report with municipal officials.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
18-2421
05/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
AN ACT relative to the timber yield tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Forest Conservation and Taxation; General Tax; Credits in Certain Cases. RSA 79:5 is repealed and reenacted to read as follows:
79:5 Tax Rate in Certain Cases. When timber harvesting is conducted on land owned by a municipality, the municipality may waive the yield tax, but shall report the location, species, and volume of wood and timber cut to the commissioner of revenue administration, who shall send one copy of the report to the division of forests and lands of the department of natural and cultural resources.
2 Forest Conservation and Taxation; Notice of Intent to Cut. Amend RSA 79:10, I(a) and (b) to read as follows:
I.(a) Every owner, as defined in RSA 79:1, II, shall, prior to commencing each cutting operation and at the beginning of each new tax year into which the cutting operation shall continue, file with the proper [assessing] municipal officials in the city, town, or unincorporated place where such cutting is to take place a notice of intent to cut provided by the commissioner of revenue administration, stating the owner's name, residence, an estimate of the volume of each species to be cut, and such other information as may be required. [A supplemental notice of intent shall be filed] Except when a bond is required for the cutting, a supplemental notice of intent shall not be required to be filed. When required, the supplemental notice shall be filed in the same manner for any additional volume of wood or timber to be cut in excess of the original estimate and within the tax year.
(b) Any intent received by a city, town, or unincorporated place shall, within [30] 5 business days, be assigned a number in accordance with the guidelines provided by the commissioner of revenue administration, and be signed by the town clerk or assessing officials. If the conditions for approval have not been met, the town clerk or assessing officials shall send a letter to the owner or the person responsible for cutting, explaining the reason for the intent not being signed. The assessing officials shall be notified of any notice of intent signed or refused by the town clerk. The assessing officials shall immediately forward any signed intent to the commissioner of revenue administration and shall also supply a copy to the owner upon request. Failure of the assessing officials to forward signed intent to cut forms to the department of revenue administration shall constitute a violation.
3 Forest Conservation and Taxation; Report. Amend RSA 79:11, I to read as follows:
I. Every owner who has filed a notice of intent to cut as provided in RSA 79:10 shall make under the penalties of perjury and file with the assessing officials a report of all wood and timber cut within 60 days after completion of an operation. The report shall be upon a form provided by the commissioner of revenue administration, with 2 copies to be sent to him. The report shall state if no growing wood and timber was cut on an operation for which a notice of intent to cut was filed. The assessing officials may require that a report of cut be filed immediately upon the completion or termination of the cutting referred to in a notice of intent to cut. Reports of cut shall contain the name, residence of the owner, volume of wood and timber cut by species or species group and primary products, and such other information as may be necessary to enable the assessing officials to locate, identify, verify and determine the full amount and true stumpage value of all wood and timber cut on the operation for which the report is filed. In addition, the person who did the cutting or the person responsible for [the cutting must] verifying the volume of the cut shall sign and verify the volumes of wood and timber reported to have been cut by the owner. The commissioner of revenue administration shall send one copy of the report of cut to the division of forests and lands of the department of natural and cultural resources. A report of wood and timber severed covering operations still in progress through March 31 of any year shall be filed not later than May 15 of said year for all wood and timber severed during the tax year up to and including March 31.
4 Effective Date. This act shall take effect upon its passage.
18-2421
10/30/17
HB 1473-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the timber yield tax.
FISCAL IMPACT: [ ] State [ ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | ||||
LOCAL: | FY 2019 | FY 2020 | FY 2021 | FY 2022 | |
Revenue | $0 to ($1.65 million) | $0 to ($1.65 million) | $0 to ($1.65 million) | $0 to ($1.65 million) | |
Expenditures | $0 | $0 | $0 | $0 | |
METHODOLOGY:
This bill permits a municipality to reduce the timber yield tax from 10 percent to 5 percent for timber harvesting conducted in consultation with or supervised by a licensed forester. A municipality may also waive the timber yield tax for timber harvesting on land owned by the municipality, but a report listing location, species and volume of wood shall be issued to the Department of Revenue Administration, who shall send a copy of the report to the Division of Forsts and Lands of the Department of Natural and Cultural Resources. The bill reassigns the duty to sign intents to cut to the town clerk.
The Department of Revenue Administration states that the bill can be administered by the Department without any additional costs that could not be absorbed in their operating budget.
The New Hampshire Municipal Association reports that it cannot predict how many municipalities would opt to reduce the tax from 10% to 5%, thus the fiscal impact is indeterminable. However, actual timber yield tax revenues were approximately $3.6 million in 2015 and $3 million in 2014. Using an average of the 2 years of approximately $3.3 million per year, the range of revenue lost from reducing the tax overall by 50 percent (from 10 percent to 5 percent) may be estimated as follows for each year:
No municipalities reduce the tax = $0 lost revenue
All municipalities reduce the tax = 50% x $3.3 million = $1.65 million lost revenue
AGENCIES CONTACTED:
Department of Revenue Administration and New Hampshire Municipal Association
