New Hampshire bill simplifies property tax appraisal for residential homes in commercial zones

The House Housing Committee of the New Hampshire Legislature convened on April 8, 2025, to discuss a proposed bill aimed at simplifying the tax assessment process for homeowners residing in industrial or commercial zones. The primary focus of the meeting was on a bill that would change the current requirement for property owners to submit an annual form for appraisal under residential use to a one-time submission.

Senator Murphy introduced the bill, explaining that it would ease the tax burden on homeowners by allowing them to fill out the necessary form only once, rather than every year. This change is intended to make it easier for residents to maintain lower taxes while living in areas designated for commercial use. The senator emphasized that the bill does not alter how properties are assessed; it simply reduces the frequency of paperwork required from homeowners.

During the discussion, Representative Folio sought clarification on the bill's implications, particularly regarding how properties are assessed. He noted that properties are typically assessed based on their highest and best use, but the bill would allow for assessment as residences, potentially leading to lower taxes. Senator Murphy confirmed that the bill maintains the current assessment practices while reducing the administrative burden on homeowners.

Concerns were raised by Representative Thackston regarding the potential for changes in property use, such as a neighboring business purchasing a residential property for expansion. He questioned how such changes would be monitored if the annual reporting requirement were eliminated. Senator Murphy reassured the committee that municipalities would still be responsible for tracking changes in property use through building permits and other means.

Bernie Deshaies, representing the New Hampshire Municipal Association, voiced opposition to the bill, arguing that the current system effectively ensures that properties are assessed accurately. He expressed concern that shifting the responsibility to assessors without annual forms could lead to difficulties in maintaining accurate tax records, particularly in smaller towns where resources may be limited. Deshaies emphasized that the existing process is not broken and suggested that any changes should be approached cautiously.

The committee members engaged in a thorough discussion about the potential impacts of the bill, including the administrative implications for municipalities and the importance of ensuring that property assessments reflect current use. While some members expressed support for the bill's intent to reduce paperwork, others highlighted the need for careful consideration of how such changes might affect tax assessments and municipal revenue.

As the meeting concluded, the committee had not yet reached a decision on the bill, indicating that further discussions and potential amendments may be necessary to address the concerns raised. The next steps will involve continued evaluation of the proposed changes and their implications for both homeowners and municipalities across New Hampshire.