House Bill 177 seeks to amend the community revitalization tax relief incentive program by expanding the definition of what is considered a qualifying property for tax incentives. The bill replaces the term "qualifying structure" with "qualifying property," thus broadening the scope to include not only structures but also land. This change is intended to stimulate economic growth, preserve cultural and historic character, and enhance community vitality by incentivizing the rehabilitation of underutilized properties in urban and town centers. The bill also introduces a more inclusive definition of qualifying properties, such as historic structures, residential properties in revitalization zones, and properties in coastal resilience and housing opportunity zones. It defines "substantial rehabilitation" and allows municipalities to set higher thresholds for rehabilitation costs to reflect local conditions.

The legislative changes include replacing the term "structure" with "property" throughout the statutes, affecting the definitions, application process, and criteria for tax relief. The bill ensures that property taxes do not increase due to substantial rehabilitation, do not exceed pre-replacement taxes, and do not exceed the tax on the assessed value of properties destroyed by fire or natural events for a set period. It outlines the application process for tax relief, including the submission of an inventory form and a letter detailing the property's historical, cultural, and architectural significance. The governing body must hold a public hearing and decide on the application within specified time frames. Tax relief for replacement properties is limited to 5 years, with a possible extension, and the tax assessment remains unchanged until construction is completed. The bill also updates the term "structure" to "property" in various sections of the RSA and would take effect 60 days after its passage.

Statutes affected:
Introduced: 79-E:1, 79-E:4, 79-E:5