Bill Text: NH HB324 | 2018 | Regular Session | Amended
Bill Title: Establishing a commission to study utility property valuation and recommend legislation to reform the current system of taxing utility property in New Hampshire.
Spectrum: Slight Partisan Bill (Republican 5-2)
Status: (Passed) 2018-06-18 - Signed by Governor Sununu 06/12/2018; Chapter 238; I. Sec. 2 eff. 11/1/2018; II. Rem. eff. 6/12/2018 [HB324 Detail]
Download: New_Hampshire-2018-HB324-Amended.html
HB 324 - AS AMENDED BY THE HOUSE
3Jan2018... 2521h
2017 SESSION
17-0556
10/09
HOUSE BILL 324
SPONSORS: Rep. Abrami, Rock. 19; Rep. Vose, Rock. 9; Rep. Azarian, Rock. 8; Rep. Lovejoy, Rock. 36; Rep. D. Thomas, Rock. 5; Sen. Carson, Dist 14; Sen. Birdsell, Dist 19; Sen. D'Allesandro, Dist 20
COMMITTEE: Science, Technology and Energy
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This bill establishes a commission to study utility property valuation and recommend legislation to reform the current system of taxing utility property in New Hampshire. The bill also establishes a moratorium until April 1, 2021 on changes to local utility property valuation methodologies.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
3Jan2018... 2521h 17-0556
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Sections; Commission to Study Utility Property Valuation; Moratorium on Changes to Local Utility Property Valuation Methodologies. Amend RSA 72 by inserting after section 12-d the following new sections:
72:12-e Commission Established; Utility Property Valuation.
I. There is established a commission to study utility property valuation and recommend legislation to reform the current system of taxing utility property in New Hampshire.
II. The commission shall be composed of 9 members, as follows:
(a) One representative of New Hampshire utility companies, appointed by the chair of the house science, technology and energy committee.
(b) One representative of New Hampshire municipalities, appointed by the New Hampshire Municipal Association.
(c) One representative from the department of revenue administration, appointed by the commissioner.
(d) One representative of certified municipal assessing officials, appointed by the New Hampshire Association of Assessing Officials.
(e) One retired member of the judiciary with experience in mediation and/or utility property valuation, appointed by the chair of the house municipal and county government committee, or, in the absence of an able and willing retired judge, a retired member of the public utilities commission appointed by the chair of house municipal and county government committee.
(f) One member of the public, chosen by the assessing standards board from among its current or former public members.
(g) Two members of the house of representatives appointed by the speaker of the house of representatives, one of whom is a member of the ways and means committee and one of whom is a member of the science, technology and energy committee, with each from a different major political party.
(h) One member of the senate, appointed by the president of the senate.
III. Legislative members of the commission shall receive mileage at the legislative rate when attending to the duties of the commission.
IV. The commission shall:
(a) Consider defects in the current system of utility property valuation, including the use of different appraisal approaches or methodologies by different municipal assessing authorities, the disparate valuation of comparable utility property in different towns throughout the state, and the costs and other inefficiencies involved in litigating disputes over valuation between municipalities and utilities.
(b) Recommend legislation intended to make the state’s system of utility property valuation more consistent across municipalities and yet still reflective of the full and fair market value of utility property in each municipality, to the extent reasonably possible.
(c) Consider, among other factors it deems relevant, the following questions:
(1) Whether the “unit” method or some other uniform statewide method of valuing utility property would yield fairer and more consistent results than the present system of municipal valuation under RSA 75:1.
(2) Whether generation facilities and other custom-built properties located in single municipalities should be excluded from or treated differently in legislation that might otherwise mandate a specific approach or method for assessing transmission and distribution facilities and other multi-jurisdictional utility network property.
(3) Without regard to the above, what valuation approach or combination of approaches is most likely to yield valuation results that are both (i) consistent across municipalities and (ii) reflective of the full and fair market value of utility property in each municipality. In considering this question, the commission shall also consider whether different approaches or methods are best suited for valuing different classes of utility property, or whether a single one of the following valuation approaches or methods can be expected to produce results that are both consistent and reflective of fair market value across various municipalities and classes of utility property:
(A) The "modified net book value" cost approach as described in proposed amendment 2017-2515h;
(B) Another cost approach, such as but not limited to “reproduction cost new less depreciation;"
(C) A market or sales approach;
(D) An income approach;
(E) An approach that combines 2 or more of the above; or
(F) Some other alternative approach.
(4) Whether the department of revenue administration would require additional resources in order to effectively, fairly, and consistently appraise and value various kinds of utility property located in municipalities throughout New Hampshire, if tasked with appraising and valuing utility property throughout the state for purposes of local property taxation.
(5) What appeal process should be available to a utility or municipality that believes a valuation made by the department of revenue administration or any other appraising agency has not resulted in a fair market valuation of specified utility property.
V. The first meeting of the commission shall be called by the first-named house member, who shall serve as chairperson of the commission. The commission shall meet as often as necessary but no less often than monthly, and shall hear testimony from both stakeholder witnesses and from independent utility property valuation experts with experience in other states. Five members shall constitute a quorum.
VI. The commission shall receive assistance from the support staff of the house and senate ways and means committees, and the house science, technology and energy committee.
VII. The commission shall report its findings and any recommendations for proposed legislation to the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, the governor, and the state library on or before September 15, 2018.
72:12-f Moratorium on Changes to Local Utility Property Valuation Methodologies. Until April 1, 2021, assessing officials of municipalities in the state shall continue to use the utility property valuation method for local property taxation within their respective municipalities that was in effect on the effective date of this section. No changes to the method for determining the appraised value of utility property shall be implemented without legislative authorization.
2 Prospective Repeal. RSA 72:12-e, relative to the commission to study utility property valuation, is repealed.
I. Section 2 of this act shall take effect September 15, 2018.
II. The remainder of this act shall take effect upon its passage.
