Issue Position: Property Tax Exemption on Pollution Control

Issue Position

Preventing towns and cities from collecting property taxes on pollution control devices is sound economic and public policy.

Speech in favor of current property tax exemption on pollution control devices prepared for NH House of Representatives May 2014.

I support the Municipal and County Government Committee's unanimous decision of Inexpedient to Legislate on HB 1310. This bill as introduced would change the long standing practice of preventing towns and cities from collecting a property tax on pollution control devices. The committee unanimously voted ITL on HB 1310 just like it did last year on HB 672 that asked for the same option.

This property tax exemption was created in 1955 and made permanent in perpetuity by this body in 1998. In the opinion of the committee, removing it would eliminate jobs, increase property taxes, and erode the trust that leaders place in New Hampshire's business practices.

The current property tax exemption has solid support and is a factor in many major investment decisions. Many facilities have relied on this exemption for several decades; other facilities are more recent and were built on the premise of ongoing tax relief. Some are owned by major entities such as Public Service of New Hampshire, and others are owned by small companies and at least one is owned by an educational institution.

The committee heard that by eliminating this exemption there would be substantial harm to jobs and the economy, as well as a likely increase in electric rates. We heard that there are 40 other states that offer such a tax exemption and changing it here would put NH at a known disadvantage when competing for new industry to come to the state.

Now the towns and municipalities are asking for revenue that they were never intended to receive and are losing tax revenue by these exemptions particularly from facilities whose investment costs have long ago been recouped by the owners.

The committee feels there is no justification for granting those municipalities increased revenue at the cost of higher prices to all citizens of the State, whether for electricity, education or commercial products such as paper and beer. It's also true that these communities receive substantial benefits in terms of jobs and economic activities as well as tax revenue from the primary facilities to which these water and air pollution control facilities are attached.

Finally, there is an issue of trust here. Removing an exemption of this long standing positive benefit could destabilize New Hampshire's credibility in dealing with businesses as they plan to either move to New Hampshire, or expand their current operations.

Thank you, and please vote in support of the MCG committee to ITL HB 1310

Representative Dennis Malloy Barrington, NH

Source