This bill introduces several significant changes regarding timber tax revenue and carbon sequestration in New Hampshire. It defines "pre-sequestration timber tax revenue" as the average timber tax revenue received by municipalities over the five years prior to a landowner's commitment to a carbon sequestration program. Additionally, it establishes a new provision allowing landowners to make a payment in lieu of taxes, which is the difference between the pre-sequestration timber tax revenue and the actual timber tax paid. The bill also enacts a moratorium on carbon sequestration contracts for land parcels over 500 acres, prohibiting any new agreements until the completion of a study by a newly established commission.

The commission will study the impacts of carbon sequestration on state and local tax revenue, forest management, and the logging industry, among other factors. It will consist of various stakeholders, including members from the House and Senate, state officials, and representatives from the timber and logging sectors. The commission is required to report its findings and recommendations by November 1, 2027. The bill repeals certain existing provisions related to payments in lieu of taxes and the carbon sequestration programs study commission, with the new provisions taking effect on July 1, 2025, and the repeal effective November 1, 2027.

Statutes affected:
Introduced: 79:5
As Amended by the House: 79:1, 79:3
As Amended by the Senate: 79:1