HB 1144 amends New Hampshire’s excavation tax law by increasing the tax rate on excavated earth from $0.02 to $0.04 per cubic yard. The bill leaves the basic structure of the tax in place: earth remains exempt from real property taxation, but excavation of earth is subject to a separate excavation tax assessed against the owner of the excavation area. The bill also keeps existing exemptions intact and sets the effective date for July 1, 2027.
The measure is primarily a revenue-raising change for municipalities, since the excavation tax is collected locally rather than by the state. According to the fiscal note, the bill would not have an immediate fiscal effect and would not begin affecting local revenue until FY 2030 because of the timing of the tax year and effective date. The Department of Revenue Administration estimated that, based on tax year 2024 excavation volumes, doubling the rate could have produced roughly an additional $242,000 statewide in local revenue if the higher rate had been in effect.
Impact
The bill would amend RSA 72-B:1, I by changing the excavation tax rate from two cents to four cents per cubic yard of earth excavated. It does not alter the definition of taxable earth, the exemption from real property taxation, or the categories of exemptions from the excavation tax. The practical effect would be to increase local tax collections from excavation activity, with the impact falling on owners engaged in earth excavation and, indirectly, on municipalities that administer and receive the tax.
Sentiment
Based on the available materials, the bill appears to be a straightforward fiscal measure with no recorded committee testimony or vote history in the provided context. The fiscal note frames the proposal in neutral terms as a rate increase that would raise local revenue, and there is no evidence in the record provided of organized support or opposition. Because no transcripts or votes are included, the overall sentiment cannot be assessed beyond the bill’s revenue-focused purpose.
Contention
The main point of contention is likely the tax increase itself: proponents would view the bill as a way to generate additional local revenue from excavation activity, while opponents may object to higher costs for excavators, developers, and property owners involved in earth removal. Another possible issue is the delayed fiscal effect, since the bill’s effective date and tax-year timing mean municipalities would not see revenue changes until FY 2030, which may affect arguments about immediacy and usefulness. No specific stakeholder objections or endorsements are included in the provided record.
Establishing an elderly, disabled, blind, and deaf property tax exemption reimbursement fund, authorizing video lottery terminals, renaming the lottery commission, and creating a voluntary statewide self-exclusion database.