The "Replacement Value Property Assessment Act" mandates that the assessment of real property and land be based on replacement or cost-based value rather than fair market value. This change aims to alleviate unfair tax burdens that can arise from fluctuating real estate market prices. The bill repeals and reenacts RSA 75:1, establishing that selectmen must appraise taxable real property at its replacement or cost-based value, which is defined for buildings as the cost to reconstruct or replace the property, and for land as the objective costs of preparing comparable land for its existing use. Additionally, the bill requires the Department of Revenue Administration to adopt rules for uniform standards in determining these values.

To facilitate the transition to this new assessment methodology, the bill introduces a blended value approach for the December 2026 tax assessments, where municipalities will use a combination of 50% fair market value and 50% replacement or cost-based value. This blend will gradually shift to 25% fair market value and 75% replacement or cost-based value for the second half of 2027, with full implementation of the new system starting in the 2028 tax year. The bill also includes provisions for taxpayer appeal rights, ensuring that any disputes regarding assessments can be addressed, and mandates an annual report from the Department of Revenue Administration to track the impact of these changes. The act will take effect on July 1, 2026.