SB 243-FN - AS INTRODUCED

2019 SESSION

19-0924

10/03

SENATE BILL 243-FN

AN ACT relative to the low and moderate income homeowners property tax relief program.

SPONSORS: Sen. Morgan, Dist 23; Sen. Rosenwald, Dist 13; Sen. Sherman, Dist 24; Sen. Levesque, Dist 12; Sen. Hennessey, Dist 5; Sen. Fuller Clark, Dist 21; Sen. Cavanaugh, Dist 16; Sen. Feltes, Dist 15

COMMITTEE: Ways and Means

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ANALYSIS

This bill increases the income limitations for applications for the low and moderate income homeowners property tax relief program, and provides for adjustment of the limitations according to the Consumer Price Index.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0924

10/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nineteen

AN ACT relative to the low and moderate income homeowners property tax relief program.

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

1  Low and Moderate Income Homeowners Property Tax Relief; Statewide Education Property Tax; Income and Property Criteria.  Amend RSA 198:57, III and IV to read as follows:

III.  An eligible tax relief claimant is a person who:

(a)  Owns a homestead or interest in a homestead subject to the education tax;

(b)  Resided in such homestead on April 1 of the year for which the claim is made, except such persons as are on active duty in the United States armed forces or are temporarily away from such homestead but maintain the homestead as a primary domicile; and

(c)  Realizes total household income of:

(1)  [$20,000] $40,000 or less if a single person;

(2)  [$40,000] $80,000 or less if a married person or head of a New Hampshire household.

III-a.  The commissioner shall biennially adjust the total household income limitations in subparagraph III(c), rounding to the nearest $1,000 based on the 2-year (24-month) percentage change in the Consumer Price Index for All Urban Consumers, Northeast Region as published by the Bureau of Labor Statistics, United States Department of Labor using the amount published for the month of January immediately preceding the start of the application period.

IV.  All or a portion of an eligible tax relief claimant's state education property taxes, RSA 76:3, shall be rebated as follows:

(a)  Multiply the total local assessed value of the claimant's property by the percentage of such property that qualifies as the claimant's homestead;

(b)  Multiply [$100,000] $170,000 by the most current local equalization ratio as determined by the department of revenue administration;

(c)  Multiply the lesser of the amount determined in subparagraph (a) or (b) by the education tax rate as shown on the tax bill under RSA 76:11-a;

(d)  Multiply the product of the calculation in subparagraph (c) by the following percentage as applicable to determine the amount of tax relief available to the claimant[:

(1)].  If [a single person and] total household income is:

[(A)] (1)  Less than [$12,500] 60 percent of the total household income under paragraphs III and III-a, 100 percent;

[(B)  $12,500 but less than $15,000] (2)  More than 60 percent but less than 75 percent of the total household income under paragraphs III and III-a, 60 percent;

[(C)  $15,000 but less than $17,500] (3)  More than 75 percent but less than 90 percent of the total household income under paragraphs III and III-a, 40 percent; or

[(D)  $17,500 but less than or equal to $20,000] (4)  90 percent or more of the total household income under paragraphs III and III-a, 20 percent.

[(2)  If a head of a New Hampshire household or a married person and total household income is:

(A)  less than $25,000] , 100 percent;

(B)  $25,000 but less than $30,00, 60 percent;

(C)  $30,000 but less than $35,000, 40 percent; or

(D) $35,000 but less than or equal to $40,000, 20 percent.]

(e)  The amount determined by subparagraph (d) is the allowable tax relief in any year.

2  Application.  RSA 198:57 as amended by section 1 of this act shall apply to statewide education property taxes assessed on and after April 1, 2019.

3  Effective Date.  This act shall take effect 60 days after its passage.

LBAO

19-0924

1/22/19

SB 243-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to the low and moderate income homeowners property tax relief program.

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

METHODOLOGY:

This bill makes the following modifications to the Low and Moderate Income Homeowner Property Tax Relief program:

1. doubles the household income amounts for both single and married persons eligible for the program and approximately doubles the amount of tax relief to be paid;
2. increases the claimant's minimum homestead amount multiplied by the applicable local equalization ratio from $100,000 to $170,000; and
3. requires the Department of Revenue Administration to biennially adjust the total household income limitations, rounding to the nearest $1,000 on the 2-year percent change in the Consumer Price Index for All Urban Consumers, Northeast Region as published by the Bureau of Labor Statistics.

The Department of Revenue Administration is unable to determine the impact this bill will have on state expenditures due to not possessing all the necessary information.  The Department anticipates the increase in the income thresholds will result in more claimants seeking tax relief under this bill.  Therefore, an increase in rebates being paid from the education trust fund will occur by an indeterminable amount.

AGENCIES CONTACTED:

Department of Revenue Administration