Private road advocate makes case for bill that would allow tax breaks

The New Hampshire Private Road Taxpayers Alliance (NHPVRTA), a state-wide nonprofit organization was created for the sole purpose of advocating tax fairness and equity for private road residents throughout New Hampshire. Those of us who live on private roads know very well the financial hardship and aggravation that comes with maintaining our private roads. Even though we pay the same property taxes as public road residents we do not get the same municipal services. Yes, we have heard "you knew the roads were private when you bought there, so don't complain". We acknowledge that fact. However, municipalities have been stretching the definition of private roads for a very long time because they benefit financially and legally by approving inferior, less than standard private roadways and related infrastructure. NHPVRTA is supporting two bills filed in the NH Senate that would rectify the current and future unfairness.

SB250 (Tax Credit) enables municipalities to offer a tax credit to qualified private road property owners. The bill does not include apartment complexes or campground type facilities. This is not mandatory legislation but rather gives towns and cities the option of offering a tax credit based on what they reasonably estimate it would cost them to provide the same services received by public road residents. As written the bill would require individual private road residents to apply for yearly for the tax credit but it is not requiring any retroactive tax credits. This bill would prevent municipalities from claiming they do not have legal authority to rectify the private road tax imbalance and puts the resolution of this unfair taxation issue in the hands of those that created the issue.

SB246 (Qualified Private Communities Act) is mandatory legislation and would require future developers of private road communities to self-fund monies that would be turned over to the eventual residents. The bill would require developers to initiate a Capital Reserve Fund in the amount of 50% of what the developer determines to be the cost to replace those roads at the time of completion of the project. This bill would provide private road residents with some initial capital for road maintenance and replacement at no cost to the state or municipalities. This initial fund would substantially delay the need to increase monthly homeowner fees pertaining to capital reserves for roads. The bill would also help future private road residents from dealing with the stress of the unfair taxation issue.

If enacted into law both bills would take effect on April 1, 2023.

Both bills have been assigned for hearings before the Senate Election Law and Municipal Affairs Committee. Those hearings may have already been completed by the time you read this piece, but it is still necessary for everyone to contact the ELMA members, your State Senator, your State House Representatives and the Governor's Office to express your desire that they all support and approve this legislation. So, sign-up on www.nhpvrta.com and follow the instructions.