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New HampshireSB1732025-2026 Regular SessionSenateWALLET

SB173

Sponsored By: Keith R. Murphy (Republican)

Became Law

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Low-income rentals: property tax equals 10%

Beginning July 1, 2025, if you elect the new assessment, your property tax equals 10% of income. The law uses your actual rental income plus other income from the property. Calculate this each year using total rent collected and other property income.

Electing the 10% tax for low-income rentals

Beginning July 1, 2025, owners of multifamily rentals under a recorded low‑income housing tax credit covenant can elect this assessment. Send the DRA election form to your municipality by October 1 before the tax year. A recorded Section 42 land‑use restriction or a New Hampshire Housing Finance Authority covenant is enough proof. Properties under construction on April 1 of the tax year are not eligible. Once elected, the property stays in this system for the next 10 tax years while the covenant remains. A property under this section cannot also claim the RSA 72:23 property tax exemption. Each year by April 15, give the assessor the DRA form and prior‑year audited financials from a CPA. If only part‑year data exists, the assessor uses that plus NHHFA projections to estimate a full year.

What income counts for 10% tax

Beginning July 1, 2025, assessors do not count subsidies, grants, below‑market loans, or tax credits in valuation. They also do not use actual construction or acquisition cost. "Other income" includes laundry, vending, and interest on restricted reserve funds. If you rent nonresidential space to third parties, market rent (considering legal or covenant limits) is counted. Common areas for residents are not separately assessed and no income is imputed.

Sponsors & Cosponsors

Sponsor

  • Keith R. Murphy

    Republican • Senate

Cosponsors

  • Howard Pearl

    Republican • Senate

  • Jason M. Osborne

    Republican • House

  • Joe H. Alexander

    Republican • House

  • Rebecca Perkins Kwoka

    Democratic • Senate

  • Tim McGough

    Republican • Senate

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. Signed by the Governor on 06/24/2025; Chapter 0120; Effective 07/01/2025

    6/24/2025Senate

  2. Enrolled Adopted, VV, (In recess 06/12/2025); SJ 17

    6/16/2025Senate

  3. Enrolled (in recess of) 06/12/2025 HJ 17 P. 24

    6/16/2025House

  4. Referral Waived by Committee Chair per House Rule 47(f) 05/08/2025 HJ 14 P. 42

    5/8/2025House

  5. Referred to Ways and Means 05/08/2025 HJ 14 P. 11

    5/8/2025House

  6. Ought to Pass: MA VV 05/08/2025 HJ 14 P. 11

    5/8/2025House

  7. Committee Report: Ought to Pass 05/01/2025 (Vote 15-0; CC) HC 23 P. 9

    5/1/2025House

  8. Executive Session: 05/01/2025 11:40 am LOB 305

    5/1/2025House

  9. ==CANCELLED== Executive Session: 05/06/2025 10:00 am LOB 305

    4/23/2025House

  10. Public Hearing: 04/08/2025 10:00 am LOB 305

    4/1/2025House

  11. Introduced (in recess of) 03/27/2025 and referred to Housing HJ 11 P. 112

    3/28/2025House

  12. Ought to Pass: MA, VV; OT3rdg; 03/20/2025; SJ 8

    3/20/2025Senate

  13. Committee Report: Ought to Pass, 03/20/2025; Vote 6-0; CC; SC 13

    3/12/2025Senate

  14. Hearing: 02/20/2025, Room 100, SH, 09:45 am; SC 10

    2/13/2025Senate

  15. Introduced 01/09/2025 and Referred to Commerce; SJ 3

    1/23/2025Senate

Bill Text

  • Enrolled

    6/16/2025

    HTML

  • Introduced

    1/23/2025

    PDF

  • CHAPTERED FINAL VERSION

    PDF

  • Version adopted by both bodies

    PDF

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