Buyers may Be Impacted By Proposed New Tax

By
Real Estate Agent with BHG The Masiello Group

 

Taxation  without Representation? Double taxation? What do you think? 

House Bill 868 originally proposed a new tax on recording documents with the registrar of deeds in New Hampshire.  The original bill has been amended and now there is a proposal to increase the transfer tax from $15.00/1000 to $15.60/1000. The revenue generated by the tax is to be dedicated to the Land and Community Heritage Investment Program (LCHIP). 

The New Hampshire Association of Realtors (NHAR) has always supported LCHIP.   NHAR endorses the $12 million LCHIP line item in Gov. Lynch's proposed budget.  However, a new tax related to real estate is unreasonable.

These are the talking points which set forth the reasons to oppose the House bill 868:

Talking Points:

  • New Hampshire has the highest uniform state real estate transfer tax in the country.  New taxes will create higher burdens for individuals attempting to purchase new property and could reduce housing opportunities across income spectrums.
  • LCHIP is already funded in the proposed budget.  Why should LCHIP, a non-state agency, receive a dedicated funding source with no oversight, while other human service programs must justify their needs through the budget process?
  • Almost all county registrars of deeds oppose the new tax.  Many testified that the bill creates administrative burdens for the counties and were unclear whether the $40 tax applies to every page recorded in a deed, mortgage or recording of plats.
  • Is this double taxation?  The Department of Revenue did not take a position on the bill but did provide a list of serious concerns, including the issues of whether the counties should be collecting a tax for a non-state agency and whether the proposal was, in fact, double taxation.

  What is your opinion about these types of special taxes on real estate?  

 You can let your legislature know your opinion - to find your legislator click here.

 

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Pam
Joan,  Thanks for alerting NH citizens about this bill.  Please let us know about other bills that may impact property owners.  Our property taxes are already so high.  We need to make sure that homes are affordable so people can move to our state and stay in our state.
Mar 02, 2007 05:57 PM #1
Rainmaker
1,089,243
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services
 Moe, Todd and Pam -- Thanks for commenting on this bill and I hope you have contacted your legislator.  I will try to keep citizens posted on other proposed legislation that may impact homeowners in NH.
Mar 03, 2007 08:18 AM #2
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Michelle

CONCORD, N.H. In a Feb. 23 story about a bill that would raise money for the state Land and Community Heritage Investment Program, The Associated Press, relying on an erroneous news release from legislators, erroneously described the measure. It would impose a $40 surcharge on every document filed with a county register of deeds, not a $40 surcharge for every page.

Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Mar 05, 2007 06:48 AM #3
Rainmaker
1,089,243
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services
Michelle: Thanks for the information. In my humble opinion, however, the best vehicle for funding the important LCHIP program is the Govenor's budget.
Mar 05, 2007 02:18 PM #4
Rainer
52,713
Sue Argue
Staged First Impressions - Hampton, NH
NH Home Stager

Joan- no one wants to hear "income tax" in New Hampshire, but it might make more sense, especially for our seniors.

Sue 

Mar 05, 2007 11:00 PM #5
Rainmaker
1,089,243
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services
Hi Sue:  I think you have a good point.  I am a sub-chair on the public policy committee of NHAR.  I can tell you that there is a great diversity of opinion regarding taxes -- however, one thing is certain if politician say the words "income tax" in this state - they cannot get elected.  I think there are only 3 states that do not have an income tax.    We have lots of fees in NH -- especially very high impact fees ($10,000+) per lot and other better fees e.g., for sewer/water hookups -- $10,000 -$20,000 depending on price of the home.  We have seniors that cannot afford the property taxes!  We have young people who cannot afford to llive in the state of NH.  So perhaps the income tax should be seriously considered.
Mar 06, 2007 07:31 AM #6
Rainer
52,713
Sue Argue
Staged First Impressions - Hampton, NH
NH Home Stager

Joan, Do you think we are alone in our thoughts??  I doubt it. Something has to give pretty soon.

Sue 

Mar 06, 2007 09:42 AM #7
Rainmaker
1,089,243
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services
Sue -- I am on the public policy committe - sub-chair of the miscellaneous committee.  The committe does not take positions on broad based taxation because of the diversity of the membership.  However, I must say the sense I get from many members is that they are opposed to an income tax.  NH has changed so much in the past 10 years I have lived here -- so I think you are right -- there are other thoughts out there, but so far people  (politicians) are afraid of those two words (income tax).
Mar 06, 2007 09:10 PM #8
Rainer
52,713
Sue Argue
Staged First Impressions - Hampton, NH
NH Home Stager

Joan, if they don't like THOSE two words, they might hear these: WE'RE MOVING!!!!!!!

Sue Argue 

Mar 07, 2007 09:25 AM #9
Rainmaker
1,089,243
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services
Sue: I think you are right -- and the economist that spoke at the public policy retreat said the same thing!  The legislature is on the line since they have to come up with the definition of an "adequate education" -- however, the Governor has promised no income tax.  Stay tuned!
Mar 07, 2007 09:54 AM #10
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Joan Whitebook

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