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Committee hears competing views on HB 585, which would broaden religious property tax exemptions
Summary
House Bill 585 would allow a single parsonage and the church's main worship building to retain a property tax exemption in more circumstances, and permit limited rental of space when revenue is used for pastoral pay, maintenance or church programs.
House Bill 585, introduced by Representative John Janigian (Rockingham District 25), proposes to clarify and expand property tax exemptions for religious organizations under RSA 72:23 by allowing a single parsonage and the main worship building to remain exempt when rented, provided revenue is used for pastoral pay, maintenance or church programs.
Janigian told the Ways and Means Committee his Arret Armenian Congregational Church in Salem faced a situation in which the congregation could not support a full‑time pastor and the parsonage was vacant; that change prompted an assessor to tax the parsonage and the congregation now pays roughly $4,000 a year. "We used the phraseology... and that's why we used it," Janigian said of the bill's language referencing "standard religious programs," noting a drafting attorney relied on existing statutory phrasing.
Former Representative Betty Gay and other supporters said the bill reflects long‑standing practices: resettled congregations often rely on parsonages and modest rental income to support ministry and maintenance. Supporters argued the measure aims to help small congregations while limiting potential exploitation by capping exemptions to one parsonage and one main worship building per organization.
The New Hampshire Municipal Association (represented by Brad Deshaies) opposed the bill, saying it expands mandated tax exemptions that shift costs to municipalities and noted the Board of Tax and Land Appeals (BTLA) decisions prompted stricter assessor practices across the state. The Municipal Association warned the bill creates reporting burdens and cited the phrase "standard religious programs" as undefined in RSA 72:23, which could invite inconsistent interpretation and more BTLA appeals.
Committee members asked about definitions and enforcement. Janigian said the bill was drafted to parallel existing statutory language, but several members urged legislative services to confirm precedent and definitions used by the BTLA. No formal committee vote was recorded during the hearing.
