Bill > HB1380

This bill requires property tax assessments to be based on replacement or cost-based value instead of fair market value, aiming to create a more stable and predictable property valuation system. The legislation mandates that property assessments for both land and improvements will be calculated using the cost to reconstruct or replace the property, with specific definitions for replacement value that exclude speculative market premiums. The bill introduces a phased transition beginning in December 2026, where property assessments will gradually shift from fair market value to replacement value, starting with a 50/50 blend and progressively moving to 100% replacement value by 2028. The Department of Revenue Administration will develop uniform standards for these calculations and must publish an annual report tracking the implementation, including information on taxpayer appeals and changes in assessed values. The bill includes provisions to ensure revenue neutrality for municipalities and maintains existing taxpayer appeal rights. Importantly, the legislation seeks to address concerns about property tax assessments being vulnerable to market fluctuations by using more objective, cost-based valuation methods that reflect the actual expense of creating or replacing property improvements.

Government Affairs

https://gc.nh.gov/bill_Status/billinfo.aspx?id=2130&inflect=2