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:
- 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.