Committee backs further work on municipal homestead tax exemption, flags statutory and implementation gaps

The House Municipal and County Government Committee voted to recommend further study of HB 1034, legislation that would enable municipalities to adopt a homestead property tax exemption intended to protect full-time residents from rising property taxes while leaving second-home owners liable for full taxes.

Representative Stavous, who led the discussion on the bill, said the draft needs substantial technical fixes and clearer eligibility criteria. He noted the bill "seeks to amend RSA 72, but the only RSA that refers to the homestead exemptions, it is RSA 480," and said the bill omits reference to RSA 198:56–57, the low- and moderate-income homeowner relief statute. Stavous added that the phrase "in good faith" regarding whether a person regards a home as their principal residence is "vague" and gives towns no mechanism to evaluate eligibility.

Other members raised implementation concerns. Committee members said the bill lacks means-testing, does not address homes with accessory dwelling units or rental activity, and provides no process for municipalities to revoke an exemption if a property becomes a vacation home. One representative argued that tax abatements alone will not address housing shortages and urged municipalities to pair policy tools (for example, TIF districts) that can finance housing construction.

In the executive session the committee moved to "recommend for further legislation" on HB 1034. Representative Savas made the motion and Representative Preuss seconded. The clerk called the roll; the motion passed 10 to 6. The chair said he will file a report recommending further study.

What happens next: The committee’s recommendation for further legislation means sponsors can rework statutory references and add implementation detail before the bill proceeds. The chair indicated his report will reflect that recommendation.