New Hampshire Homestead Act of 2025 Proposal
Section 1: Purpose
The New Hampshire Homestead Act of 2025 aims to provide property tax relief for state residents by establishing a homestead exemption. This initiative seeks to protect homeowners from rising property tax burdens, promote homeownership, and support economic stability.
Section 2: Definitions
- “Homestead” refers to a primary residence owned and occupied by a New Hampshire resident.
- “Exemption” refers to a reduction in assessed property value for tax purposes.
- “Qualifying Resident” refers to a homeowner who meets the eligibility criteria set forth in this Act.
Section 3: Eligibility Requirements
To qualify for the homestead exemption, applicants must:
- Be a legal resident of New Hampshire.
- Own and occupy the property as their primary residence for at least one year prior to application.
- Not claim a similar exemption in another state.
- Meet income and asset limits:
- The combined house hold Income of less than $80,000 = 100% of benefit listed in section 4
- The combined house hold Income of more than $80,000 = 50% of benefit listed in section 4
- Seniors of 65 years or older combined income of under $100,000 = 100% of benefit listed in section 4
Section 4: Exemption Benefits
- A qualifying resident shall receive a property tax exemption of up to $150,000.
- Exemptions may vary based on income levels to prioritize relief for lower and middle-income families.
- Additional exemptions may apply for seniors, veterans, and disabled individuals.
- New Hampshire offers a homestead exemption that reduces the total taxable assessment of a home by $150,000:
- A single property tax to the tax payer increase cannot exceed 3% year over year or the rate of inflation (as determined by the Consumer Price Index), whichever is lower.
- Example: A $150,000 at a tax rate of $13.63/1,000 =150*13.63 = $2,044.50 per qualified homestead.
Section 5: Application Process
- Applications must be submitted annually to the local tax assessor’s office.
- Proof of residency, ownership, and income eligibility is required.
- Appeals may be filed for denied applications.
Section 6: Funding and Implementation
- The state will allocate funds to offset local tax revenue losses.
- Municipalities will be reimbursed for the difference in tax revenue.
- A review board will monitor and assess the program’s impact annually.
Section 7: Effective Date
This Act shall take effect on Dec 31, 2025 following approval by the state legislature and governor.