Bill > HB1417

This bill enables municipalities in New Hampshire to voluntarily adopt a land value tax (LVT) system, which taxes land and building improvements at different rates to incentivize more efficient land use and development. Municipalities can choose between a split-rate tax, where land is taxed at a higher rate than improvements, or a pure land tax, where improvements are taxed at zero rate. To implement an LVT, a municipality must hold a public hearing, publish a fiscal impact statement, and vote to adopt the system through their legislative body. The bill requires separate assessment of land and improvement values, ensures existing tax exemptions and credits remain in place, and mandates that the first year of implementation be revenue-neutral. The Department of Revenue Administration will provide technical assistance, create implementation guidelines, and offer potential grants to municipalities. The system is designed to be optional, with municipalities able to rescind the LVT after at least three tax years. The bill aims to promote efficient land use, expand housing supply, reduce blight, and shift tax burdens away from building investments. An appropriation of $1 is made to support the program's implementation, with a full rollout planned for January 1, 2027, and a comprehensive review scheduled for January 1, 2032.

Government Affairs

https://gc.nh.gov/bill_Status/billinfo.aspx?id=2398&inflect=2