Budget & Taxes (Property Tax)

HB 585 creates a property tax exemption for religious organizations that rent out specific properties. It allows one rental church parsonage (residential) and one rental worship building (e.g., church, synagogue, mosque) to be exempt from property taxes, provided the rental income is used solely for the religious leader’s compensation, building maintenance, or standard religious programs. The exemption applies only to single houses of worship (like churches or synagogues) and limits each organization to one exemption per property type. This change takes effect for tax periods ending after December 31, 2024.

HB 1385 prohibits municipalities with minimal or no public education costs from using negative property tax rates, which would otherwise require the state to pay the municipality for taxable property. The bill specifically targets towns or cities that have taxable property but allocate little or nothing to public education in their budgets. It requires the Department of Revenue Administration to reject any negative tax rate proposals from these localities. This change takes effect immediately upon the bill's passage and applies statewide to all qualifying municipalities.

HB 1380, the "Replacement Value Property Assessment Act," changes how property taxes are calculated in New Hampshire by requiring assessments to be based on replacement or cost-based value (not current market value) for both buildings and land. It affects all property owners and municipalities, implementing a phased transition: 2026 assessments use a 50/50 blend of old and new methods, shifting to 25% market value/75% cost-based value in 2027, and fully adopting cost-based assessments starting in 2028. The bill includes revenue neutrality rules (municipalities cannot raise total tax revenue solely from this change) and establishes appeal processes for property owners. It takes effect July 1, 2026, with annual reporting on assessment impacts required starting in 2028.

HB 1691 (New Hampshire) limits eligibility for property tax assessments based on current agricultural or conservation use. It restricts qualifying land to 40 acres per lot in semi-rural zones, 10 acres in developed zones with conservation land requirements, and prohibits clear-cutting or invasive species. Municipalities must cap current use approvals at 75% of rural zones and 5% of high-density zones, while requiring sustainable practices like invasive species management and limiting chemical use. Violations trigger retroactive tax payments using "best and highest use" rates from the last compliance date. This affects landowners currently enrolled in New Hampshire's current use tax program.