Governor Craig Benson is pledging to fight a proposed rule change that could increase property taxes on forest land enrolled in the state's current use program. Advocacy groups for land conservation and the timber industry, meanwhile, support the change.
A state law called current use gives a tax break to property owners who don't develop forest and farmland. Such breaks are now extended to about 60 percent of the state's taxable property. New Hampshire's current use board has proposed to raise forest valuations for the first time since 2001. To Governor Benson that move threatens to not only the environment, but also the state's tourism economy. Benson Spokesperson Alicia Preston.
"The governor's concern is that if you increase the cost landowners have to pay to maintain their land as current use than people may be led to developing their land…..The other point the governor wanted to make is where will john lynch stand on this?"
Supporters of the policy change -- and they include just about every major landowner, environmental and timber industry group in the state -- don't share the Governor's concerns.
"Nobody likes to pay more taxes, but if landowners are getting more money for their timber and thus the income producing capability of timber is going up than the assessment ranges under the law have to go up to reflect that."
That's Charlie Niebling of the society for the protection of NH forests. He and others who support the changes stress that they're the product of a formula created by the current use board and forest experts at UNH…..Under the changes, maximum valuation increases would range from 10 to 21 dollars per acre……Taxation, meanwhile, varies from community to community……But using the town of Plainfield as an example, the largest increase any current use landowner would see is $46.20 per 100 acres………In a written statement the governor called such increases severe. According to Eric Darbe of the NH Timberland owners association, that's not the sense of most who depend on the timber economy for their livelihood.
"We have in the past argued that this wasn't a time to increase rates……but it's been a while since the rates went up and we felt that the data showed that it made sense to do so right now and so that's why we didn't oppose it."
There will be a public hearing on the proposed rule change at the department of revenue on January 18th…..Governor Benson, who leaves office on January 6th, says he plans to offer his help to those in the forest and timber industry who want to defeat the proposal……Governor-elect John Lynch meanwhile, says he supports current use, but would need to know more about the specifics of the proposed change before weighing in. All changes to the current use program are subject to legislative approval.