New Hampshire HB 1380: requiring the assessment of real property and land be based on replacement or cost-based value.

Bill Text

HB 1380-LOCAL - AS INTRODUCED

2026 SESSION

 26-2918

 07/08

HOUSE BILL 1380-LOCAL

AN ACT requiring the assessment of real property and land be based on replacement or cost-based value.

SPONSORS: Rep. Potenza, Straf. 19; Rep. Burnham, Straf. 2; Rep. DeRoy, Straf. 3; Rep. Grote, Rock. 24; Rep. Osborne, Rock. 2; Rep. Wheeler, Hills. 33

COMMITTEE: Municipal and County Government

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ANALYSIS

 This bill requires that the assessment of real property and land be based on its replacement- or cost-based value.

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Explanation: Matter added to current law appears in bold italics.

 Matter removed from current law appears [in brackets and struckthrough.]

 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

 26-2918

 07/08

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty-Six

AN ACT requiring the assessment of real property and land be based on replacement or cost-based value.

Be it Enacted by the Senate and House of Representatives in General Court convened:

 1 Short Title. This act may be cited as the "Replacement Value Property Assessment Act." 

 2 Statement of Purpose. The general court hereby finds that: 

 I. Basing property tax assessments on speculative market prices can result in unfair tax burdens, especially during rapid fluctuations in the real estate market.

 II. Assessments for both improvements and land ought to be based upon replacement or cost-based value, not fair market value, with protections for taxpayers and municipalities during the transition period beginning with December 2026 assessments. 

 3 Taxation; Appraisal of Taxable Property; How Appraised. RSA 75:1, I-III is repealed and reenacted to read as follows: 

 I. Except as otherwise provided by law, the selectmen shall appraise all taxable real property, including both improvements and the underlying land, at its replacement or cost-based value rather than at estimated fair market value. 

? (a) For buildings and other improvements, “replacement value” means the cost, at the time of appraisal, to reconstruct or replace the property with materials of like kind and quality, less depreciation. 

 (b) For land, “replacement or cost-based value” means the value derived from the objective costs of preparing comparable land for its existing use, including infrastructure and permitted improvements, and shall not include speculative premiums or inflated market prices. 

 II. The commissioner of the department of revenue administration shall adopt rules under RSA 541-A to establish uniform standards and methodologies for determining replacement or cost-based value for both improvements and land, including approved cost manuals, depreciation schedules, and land-preparation cost factors. 

 III. All references in state law or local ordinance to “fair market value” for purposes of property tax assessment shall be deemed to mean “replacement or cost-based value” after July 1, 2026. 

 4 New Sections; Transition to Replacement or Cost-Based Value. Amend RSA 75 by inserting after section 1-a the following new sections: 

 75:1-b Transition to Replacement or Cost-Based Value. 

 I. For the tax assessments used to produce the December 2026 final tax bills, each municipality shall assess taxable real property using a blended value consisting of: 

 (a) 50 percent of the assessment under the former fair market value method, and 

 (b) 50 percent under the replacement or cost-based value method described in RSA 75:1. 

 II. For the 2027 tax year: 

 (a) First-half 2027 tax bills: 50 percent fair market value / 50 percent replacement or cost-based value; 

 (b) Second-half 2027 tax bills: 25 percent fair market value / 75 percent replacement or cost-based value. 

 III. Beginning with all assessments for the 2028 tax year and thereafter, property shall be assessed solely under the replacement or cost-based value system. 

 75:1-c Revenue Neutrality. No municipality shall increase its total property-tax levy solely due to the change in assessment methodology required by RSA 75:1 or 75:1-b. Any increase in total property-tax revenue during or after the transition must result from duly adopted budgetary, rate, or levy actions under existing law. 

 75:1-d Taxpayer Appeal Rights. Any taxpayer who believes the replacement or cost-based assessment of their property has been improperly calculated may appeal such assessment under the same procedures and deadlines established under RSA 75 and RSA 76. The department of revenue administration shall develop and publish a standard appeal form and guidance for use during the transition period and thereafter. 

 5 New Section; Annual Report. Amend RSA 75 by inserting after section 1-d the following ne