Bill would add 0.75% surcharge on non‑primary residences over $500,000; towns to keep proceeds

CONCORD — Representative Jonah Orion Wheeler told the House Ways and Means Committee he introduced HB 1580 to address rising property taxes by targeting non‑primary residences worth more than $500,000 with a 0.75% surcharge. "Any home in this state that isn't occupied more than 180 days out of the year that's valued at over $500,000 would face a 0.75% surcharge tax," Wheeler said.

Wheeler said money raised under his bill would be returned to the municipality where the property is located and that he drafted the bill to avoid taxing units that are effectively long‑term rentals. "I didn't want any general fund games to be played," Wheeler said.

Opponents testified that the bill would disproportionately impact small local owners who rely on short‑term rentals for supplemental income. Sarah Currid, an owner of several short‑term rentals, said HB 1580 "functions as a punitive measure against lawful property use and small scale housing providers" and would add administrative burdens and enforcement uncertainty for owners and towns.

Realtors and real‑estate operators argued the surcharge would impose heavy costs on seasonal properties and legacy families; Representative Rosemarie Rung offered a concrete example of a seasonal camp assessed near $850,500 that would face thousands of dollars in additional surcharges, while pointing out her family pays much higher property taxes on their primary residence.

The Department of Revenue Administration flagged technical issues in the bill's residency test and recommended changes for applicability and effective dates. DRA said implementing the surcharge would require updates to its municipal tax‑rate portal and requested an appropriation to fund system changes.

The committee closed the public hearing on HB 1580 after testimony. No work‑session decision was recorded at the hearing.