Bill > SB277

This bill addresses the taxation of electric generating facilities by modifying how utility property taxes and statewide education property taxes are applied. Specifically, the bill provides that electric generating facilities that are exempt from utility property tax and are making payments in lieu of taxes (PILOT) to a municipality will not be required to pay the state education tax until either their current PILOT agreement expires or July 1, 2032, whichever comes first. Once the state education tax becomes due, it can either be incorporated into a new PILOT agreement or paid separately using the facility's imputed value as calculated by the Department of Revenue Administration. The bill also requires owners of such properties to file an annual form by May 1 to help the department track utility and non-utility property assets. Additionally, the legislation exempts property used for electricity generation from utility property tax, with the exception of properties owned by entities involved in electricity distribution or transmission. The changes will apply to tax periods beginning on or after April 1, 2028, and the act will take effect on July 1, 2027. While the bill maintains the total statewide education property tax at $363 million, it is expected to result in a potential decrease in Education Trust Fund revenue and may affect the statewide equalized tax rate.

Budget and Finance

https://gc.nh.gov/bill_status/legacy/bs2016/bill_docket.aspx?lsr=432&sy=2025&sortoption=&txtsessionyear=2025&txtbillnumber=SB277