HB 1707 pairs transfer‑tax relief for low/moderate buyers with steep penalties on long‑vacant properties
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Summary
Representative Reed proposed HB 1707 to exempt qualifying low/moderate‑income buyers from the state transfer tax and to levy a heavy supplemental tax on residential properties vacant or short‑term rented for more than half the year; the sponsor said the package would free up housing while funding buyer relief, but opponents warned of perverse incentives and administrative complexity.
Representative Ellen Reed told the committee HB 1707 would use two levers to address the housing crunch: a transfer‑tax exemption for low to moderate‑income households and a steep supplemental tax on residential properties left vacant or used as short‑term rentals for at least six months of the year. Reed emphasized the bill's behavioral intent: to incentivize owners to rent properties into the market rather than leaving them vacant.
Her testimony included state vacancy metrics and a policy rationale: New Hampshire vacancy data were presented to underscore the mismatch between vacant homes and the shortage of units available to renters and buyers. Reed said the bill's tax on unoccupied or short‑term rental residential property would be intentionally large to change behavior but suggested she would consider amendments such as minimum value thresholds or municipal exemptions for properties taken for back taxes.
Supporters and opponents gave mixed views. Proponents and housing advocates argued the bill could free units for workers and fund transfer‑tax exemptions that help first‑time buyers. Opponents, including short‑term rental owners, realtors and local property owners, said many seasonal and vacation homes cannot practically be converted into workforce housing, pointed to high insurance and operating costs for STR owners, and warned that the tax could accelerate sales to institutional buyers rather than produce more rental supply.
DRA: Jennifer Ramsey noted technical drafting issues and that accurate statewide counts of unoccupied units are challenging; she flagged system costs and compliance questions that would need to be addressed before implementation.
Next steps: The hearing closed after extensive testimony. The sponsor indicated willingness to consider technical amendments to address municipal exceptions and value thresholds.