Tax Incentive Mechanism
A 2002 State law (RSA 79-D) creates a mechanism to encourage preservation of old New Hampshire hams and other historic agricultural buildings.
RSA 79-D authorizes towns and cities to grant property tax relief to barn owners who (a) can demonstrate the public benefit of preserving their barns or other old farm buildings, and (b) agree to maintain their structures throughout a minimum 10-year preservation easement.
The Purpose
The 2002 law is based on widespread recognition that many of New Hampshire's old barns and other agricultural buildings are important local scenic landmarks and help tell the story of farming in the state's history. Yet many of these historic structures are being demolished or not repaired because of the adverse impact of property taxes. RSA 79-D is intended to encourage barn owners to maintain and repair their buildings by granting them specific tax relief and assuring them that assessments will not be increased as a result of new repair and maintenance work.
The Mechanism
The program represents a uniquely New Hampshire approach, which is strictly voluntary on the part of the property owner, and combines statewide eligibility criteria and guidelines with decision-making and implementation at the local level. It is closely modeled after New Hampshire's discretionary easement program (RSA 79-C), which authorizes local governments to grant property tax relief to encourage preservation of open land.
On or before April 15 of the new tax year, any owner of an historic barn or other farm building may seek relief by applying to their local governing body (Board of Selectmen or city government) to grant a discretionary preservation easement to the municipality and agreeing to maintain the structure in keeping with its historic integrity and character during the term of the easement. The application, executed on a form provided by the N.H. Department of Revenue Administration, is to include a map showing the location of the structure(s) and a description of how the property meets the prescribed test of public benefit.
The town selectboard or appropriate city government department will then have 60 days in which to act on the application. A public hearing is required, which may provide an opportunity for local historical societies or other advisory groups to express support for barn preservation efforts. If the municipality determines, in exercising its discretion, that the proposed preservation of the structure is consistent with the purpose of the law, it may acquire an easement on the structure for a minimum of ten years and grant tax relief within a range of a 25 to 75% reduction of the structure's full assessed value. Maintaining and repairing the building will not result in an increase in its assessed value for property tax purposes.
Effective Date
The law (RSA 79-D) went into effect on July 2, 2002. Property tax reductions for barns and other buildings, and the land under them, first became effective in tax year 2003. Applications for new easements, to go into effect in the coming tax year, must be submitted on or before April 15.
Eligibility
For this program, "historic agricultural structure" is defined as a barn or other structure,
including the land on which it is built, which currently or formerly was used for agricultural purposes, and is at least 75 years old. The test of demonstrated public benefit shall be considered to have been met if the structure complies with one or more of the following: (1) provides scenic enjoyment to the general public from a public road or waterway; (2) is historically important on a local, regional, state or national level; (3) contributes to the historic or cultural integrity of a property listed on or eligible for the New Hampshire State or National Registers of Historic Places, or is in a locally designated historic district.
In determining eligibility, the Selectboard or appropriate city department shall refer to statewide guidelines adopted by the New Hampshire Historic Agricultural Structures Advisory Committee, and may weigh the public benefit to be gained by the preservation of the structure versus the tax revenue to be lost if the easement is accepted. The statewide guidelines include consideration of whether there is local interest and support for the structure's preservation, its historic and agricultural significance, and the degree to which tax relief will encourage its preservation.
Whom do I contact?
The N.H. Department of Revenue Administration has provided application form PA-36-A to all town and city governments. Application forms and eligibility guidelines should be available from your town clerk, Board of Selectmen, or appropriate city department. Applications are also available here. For more information, contact the N .H. Department of Revenue Administration's Property Appraisal Division, (603) 230-5950.
For more background information, including a copy of the statute, a sample discretionary preservation easement and a guide to assist applicants and selectmen work through the application and approval process, and an application itself, click here or contact the New Hampshire Preservation Alliance at (603) 224-2281 or admin@nhpreservation.org.
The full text of the statute is also available on the State of NH website.
The Preservation Alliance is the statewide, non-profit membership organization committed to preserving historic buildings, communities and landscapes through leadership, education and advocacy.
March 2013
NEW HAMPSHIRE PRESERVATION ALLIANCE
P.O. BOX 268 • CONCORD, N.H. 03302-0268
TELEPHONE (603) 224-2281 • FAX (603) 226-9368