New Hampshire HB 1417: enabling municipalities, cities, and towns to adopt a land value tax system and making an appropriation therefor.

Bill Text

HB 1417-FN - AS INTRODUCED

2026 SESSION

 26-3186

 07/06

HOUSE BILL 1417-FN

AN ACT enabling municipalities, cities, and towns to adopt a land value tax system and making an appropriation therefor.

SPONSORS: Rep. Sweeney, Rock. 25

COMMITTEE: Municipal and County Government

-----------------------------------------------------------------

ANALYSIS

 This bill enables municipalities, cities, and towns to adopt a land value tax system and appropriates money to the department of revenue administration to help implement such system.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 

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 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

 26-3186

 07/06

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty-Six

AN ACT enabling municipalities, cities, and towns to adopt a land value tax system and making an appropriation therefor.

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

 1 Statement of Purpose. The general court hereby finds that allowing municipalities to tax land values at a higher rate than improvements can promote efficient land use, expand housing supply, reduce blight and vacancy, and shift the tax burden away from building investment. 

 2 New Subdivision; Land Value Taxation System. Amend RSA 76 by inserting after section 21 the following new subdivision: 

Land Value Taxation System

 76:22 Definitions. In this subdivision: 

 I. “Land value” means the assessed value of a parcel of real property exclusive of the value of any buildings, structures, or other improvements on the parcel. 

 II. “Improvement value” means the assessed value attributable to buildings, structures, and other improvements located on a parcel. 

 III. “Land value tax" or "LVT" means a municipal property tax system under which land value and improvement value are assessed separately and taxed at different rates as authorized by this subdivision. 

 IV. “Split-rate tax” means an LVT in which land value is taxed at a higher rate than improvement value. 

 V. “Pure land tax” means an LVT in which improvement value is taxed at a rate of zero. 

 VI. “Municipality” means a town, city, or village district with taxing authority. 

 VII. “Department” means the department of revenue administration. 

 VIII. “BTLA” means the board of tax and land appeals. 

 76:23 Adoption Authority. 

 I. Notwithstanding any other provision of law to the contrary, a municipality may adopt a LVT by the procedure in RSA 76:24 to apply to the municipal portion of the property tax rate. 

 II. Adoption of a LVT under this subdivision shall not alter, replace, or reduce the statewide education property tax or any county tax. Such components shall continue to be assessed and collected as provided elsewhere in law on total assessed value unless otherwise provided by statute. 

 76:24 Local Adoption. 

 I. Notwithstanding any provision of law to the contrary, a municipality may adopt a LVT by vote of its legislative body following: 

 (a) At least one public hearing noticed 14 days in advance; and 

 (b) The publication of a plain-language fiscal and distributional impact statement prepared by the governing body, with assistance from the assessing officials. 

 II. The warrant article or ordinance shall specify: 

 (a) Whether the municipality adopts a split-rate tax or a pure land tax; 

 (b) The initial tax differential, expressed as separate rates on land value and improvement value, subject to the parameters of RSA 76:27; and 

 (c) A transition schedule under RSA 76:28. 

 III. In towns, adoption shall be by majority vote at an annual or special town meeting. In cities, adoption shall be by majority vote of the city council subject to any charter-required mayoral approval or veto procedures. 

 IV. A municipality may rescind a LVT by the same process after at least 3 tax years of operation, with a transition plan under RSA 76:28, III. 

 76:25 Assessment Standards; Data Transparency. 

 I. Each municipality adopting a LVT shall ensure separate land and improvement values for every taxable parcel using mass appraisal methods consistent with international association of assessing officers standards, department rules, and RSA 21-J. 

 II. Assessing officials shall maintain and annually update a land value map or dataset and make parcel-level land and improvement values publicly available, subject to privacy protections in law. 

 III. The department shall adopt rules, pursuant to RSA 541-A, establishing minimum uniform standards for land/improvement split assessment, modeling, and ratio studies specific to LVT municipalities. 

 IV.