Municipalities would limit taxes on qualifying farm structures

Municipalities, cities, and towns would assess qualifying farm structures at no more than replacement cost minus depreciation, and land beneath them at no more than 10 percent of market value. Qualifying farm structures include farms and parts of farms, such as barns, greenhouses, silos, poultry houses, maple sugar houses, processing sheds, and certain parts of residences. The bill would require every municipality, city, and town to adopt these rules. Local governments would have to adopt the rules by April 1, 2027, and the act would take effect on that date.

A tax would become due when a qualifying farm structure or the land beneath it no longer meets the bill's definition. The rule covers property receiving the reduced farm assessment and includes conversions that occur within or after the first five years of that assessment. No tax would be assessed for certain government takings that cause the property to lose eligibility. No tax would be assessed when a road uses an existing right-of-way only to reach an adjoining lot, unless the adjoining owner caused a qualifying change in use. Within the first five years, the tax would equal the difference between taxes paid under the farm assessment and taxes that would have been paid at full market value. After five years, the tax would equal 10 percent of the property's full and true market value on the conversion date. The conversion date determines the tax, with different calculations applying during the first five years and after five years of reduced assessment.

Property owners would have to notify local assessors of disqualifying changes, and owners owing the conversion tax would have to pay it promptly. The rules apply to property owners receiving the bill's reduced farm assessment and to unpaid taxes due under the chapter. Owners would have 60 days to give written notice of a change that makes the property ineligible. Failure to give notice would not cancel the tax owed. Taxes would be due within 30 days and unpaid amounts would accrue interest at the rate set under RSA 76:13. Unpaid taxes could support a property lien and be collected under RSA 80 procedures. The 60-day notice period would begin when a disqualifying change occurs, and the 30-day payment period would apply when taxes become due.