Chapter 132: Tax Exemptions and Credits

Municipal Code:

Details

[HISTORY: Adopted by the Town Council of the Town of Durham on July 8, 2002 as Ord. No. 2002-04 rescinding Chapter 96 “Permanently Disabled Exemptions” adopted on 3/3/97 and Chapter 52 “Elderly Exemptions” adopted on 3/3/97 and creating a new Chapter 132 to be entitled “Tax Exemptions and Credits”]. (Adopted as a new Chapter by Ord. #2002-04 dated 7/8/02)

General Provisions

132-1. Blind Exemption

Every inhabitant who is legally blind as determined by the Blind Services Program, Bureau of Vocational Rehabilitation, Department of Education shall be exempt each year on the assessed value, for property tax purposes, of his or her residential real estate to the value of $37,000.00.
(Section 132.1 amended by Ord. #2023-07 dated 9/7/23)

132-2. Disabled Exemption

A. Any person who is eligible under Title II or Title XVI of the Federal Social Security Act for benefits to the disabled shall receive a yearly exemption in the amount of $175,000.00.

B. The exemption in paragraph A may be applied only to property which is occupied as the principal place of abode by the disabled person. The exemption may be applied to any land or buildings appurtenant to the residence or to manufactured housing if that is the principal place of abode.

C. To qualify for this exemption, the person must have been a New Hampshire resident for at least 5 years and own and occupy the real estate individually or jointly, or if the real estate is owned by a spouse, they must have been married for at least 5 years. In addition, the taxpayer must have a net income of not more than $47,000.00 or, if married, a combined net income of not more than $65,000.00; and own net assets not in excess of $200,000.00, excluding the value of the person’s residence.
(Section 132.2 amended by Ord. #2023-07 dated 9/7/23)

132-3. Elderly Exemption

A. Any person who is eligible under this section shall receive a yearly exemption as follows: For a person 65 years of age up to 75 years, the exemption shall be $175,000.00 for a person 75 years of age up to 80 years, the exemption shall be $225,000.00; for a person 80 years of age or older, the exemption shall be $275,000.00

B. No exemption shall be allowed unless the person applying therefore:

(1) Has resided in New Hampshire for at least 3 years preceding April 1 in the year in which the exemption is claimed.

(2) Has a net income of not more than $47,000.00 or, if married, a combined net income of less than $65,000.00. The net income shall be determined by deducting from all moneys received, from any source including social security or pension payments, the amount of any of the following or the sum thereof:

(a) Life insurance paid on the death of an insured;

(b) Expenses and costs incurred in the course of conducting a business enterprise;

(3) Owns net assets not in excess of $200,000.00, excluding the value of the person’s actual residence and the land upon which it is located up to the greater of 2 acres or the minimum single family residential lot size specified in Chapter 175 of this Code. “Net assets” means the value of all assets, tangible and intangible, minus the value of any good faith encumbrances. “Residence” means the housing unit, and related structures such as an unattached garage or woodshed, which is the person’s principal home, and which the person in good faith regards as home to the exclusion of any other places where the person may temporarily live. “Residence” shall exclude attached dwelling units and unattached structures used or intended for commercial or other nonresidential purposes.

C. Additional requirements for an exemption shall be that the property is:

(1) Owned by the resident; or

(2) Owned by a resident jointly or in common with the resident’s spouse, either of whom meets the age requirement for the exemption claimed; or

(3) Owned by a resident jointly or in common with a person not the resident’s spouse, if the resident meets the applicable age requirement for the exemption claimed; or

(4) Owned by a resident, or the resident’s spouse, either of whom meets the age requirement for the exemption claimed, and when they have been married to each other for at least 5 years.
(Section 132-3 amended by Ord. #2003-04 dated 10/8/03, Ord. #2007-09 dated 10/15/07, and Ord. #2009-08 dated 9/14/09 Ord. #2017-02 dated 4/3/17, and Ord. #2023-07 dated 9/7/2023)

132-4. Service-Connected Total Disability Tax Credit

A. Any person who has been honorably discharged or an officer honorably separated from the military service of the United States and who has total and permanent service-connected disability, or who is a double amputee or paraplegic because of service-connected injury, or the surviving spouse of such a person, shall receive a yearly tax credit in the amount of $700 of property taxes on the person’s residential property.

B. The optional tax credit for service-connected total disability is hereby adopted and shall be 2,500.00 in Durham. The optional tax credit for service-connected total disability shall replace the standard tax credit in its entirety and shall not be in addition thereto.

C. The optional tax credit for service-connected disability shall be subtracted each year from the property tax on the person’s residential property.

D. The optional tax credit in this section may be applied only to property which is occupied as the principal place of abode by the disabled person or the surviving spouse. The tax credit may be applied to any land or buildings appurtenant to the residence or to manufactured housing if that is the Principal place of abode.

E. Applications for this credit shall be made in the following manner.

(1) Any person applying for the optional tax credit under this section shall furnish to the assessors, certification from the United States Department of Veterans’ Affairs that the applicant is rated totally and permanently disabled from service connection. The assessors shall accept such certification as conclusive on the question of disability unless they have specific contrary evidence and the applicant, or the applicant’s representative, has had a reasonable opportunity to review and rebut that evidence. The applicant shall also be afforded a reasonable opportunity to submit additional evidence on the question of disability.

(2) Any decision to deny an application shall identify the evidence upon which the decision relied and shall be made within the time period provided by law.

(3) Any tax credit shall be divided evenly among the number of tax payments equired annually by the town or city so that a portion of the tax credit shall apply to each tax payment to be made.
(Section 132-4 amended by Ord. #2008-03 dated 3/3/08 and Ord. #2021-03 dated 8/16/21))

132-5. Veterans’ Tax Credit

A. The optional veterans’ tax credit, upon adoption by a city or town pursuant to RSA 72:27-a, shall be an amount from $51 up to $500. The optional veterans’ tax credit shall replace the standard veterans’ tax credit in its entirety and shall not be in addition, thereto.

B. The optional veterans’ tax credit shall be $500 effective 4/1/2023 subtracted each year from the property tax on the veteran’s residential property. However, the surviving spouse of a resident who suffered a service-connected death may have the amount subtracted from the property tax on any real property in the same municipality where the surviving spouse is a resident

C. The following persons shall qualify for the optional veterans’ tax credit:

(1) Every resident of this state who served not less than 90 days in the armed forces of the United States in any qualifying war or armed conflict listed in this section and was honorably discharged or an officer honorably separated from service; or the spouse or surviving spouse of such resident;

(2) Every resident of this state who was terminated from the armed forces because of service-connected disability; or the surviving spouse of such resident; and

(3) The surviving spouse of any resident who suffered a service-connected death.

D. Service in a qualifying war or armed conflict shall be as follows:

(1) “World War II” between December 7, 1941 and December 31, 1946;

(2) “Korean Conflict” between June 25, 1950 and January 31, 1955;

(3) “Vietnam Conflict” between December 22, 1961 and May 7,1975;

(4) “Vietnam Conflict” between July 1,1958 and December 22, 1961, if the resident earned the Vietnam service medal or the armed forces expeditionary medal;

(5) “Persian Gulf War” between August 2, 1990 and the date thereafter prescribed by Presidential proclamation or by law; and

(6) Any other war or armed conflict that has occurred since May 8, 1975, and in which the resident earned an armed forces expeditionary medal or theater of operations service medal.
(Section 132-5 amended by Ord. #2008-03 dated 3/3/08 and Ord. #2023-02 dated 2/20/23)

132-6. Surviving Spouse

The surviving spouse of any person who was killed or died while on active duty in the armed forces of the United States or any of the armed forces of any of the governments associated with the United States in the Wars, conflicts or armed conflicts, or combat zones, shall receive a tax credit in the amount of $2,000 effective 4/1/08 for the taxes due upon the surviving spouse’s real and personal property, whether residential or not, in the same municipality where the surviving spouse is a resident.
(Section 132-6 amended by Ord. #2008-03 dated 3/3/08)

Effective Dates

Section 132-5 and Section 132-6 of this Chapter will become effective April 1, 2003. All remaining sections will become effective retroactively to April 1, 2002.

132-7 Solar Energy Heating System

A. “Solar energy system” means a system which, as defined by RSA 72:61:

(1) utilizes solar energy to heat or cool the interior of a building or to heat water for use in a building and which includes one or more collectors and a storage container; or

(2) provides electricity for a building by the use of photovoltaic panels.

B. Property tax exemptions for solar energy systems shall be in an amount equal to any increase in incremental assessed value of the entire property attributable to the qualifying equipment that is in excess of the property’s assessed value attributable to conventional electrical and heating systems that

(1) Are currently part of the property;

(2) Were part of the property immediately prior to the installation of the solar energy system; or

(3) Were of an equivalency that would typically be expected by the market in such a property absent the solar energy system.

C. Property that includes an installed solar energy system for which an exemption was granted prior to the effective date of this revised policy will be considered “grandfathered” and will continue to receive an exemption under the previous policy as long as the system is in good working order. The “cost” referenced in the previous policy shall mean “installation cost.”

D. When a property that includes an installed solar energy system that is “grandfathered” transfers ownership, the “grandfathered” solar exemption shall cease, and the revised solar exemption policy shall be implemented as of April 1 of that tax year.

E. Every five years during the Town’s assessment revaluation period the Assessor shall confirm the functioning and condition of each solar energy system (“asset”) and then apply depreciation to determine the contributory value of that asset to the aggregate Town assessment to be reported to the State.
(Section 132-7 amended by Ord #2015-02 dated 2/16/15)

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