Here is my final report of bills that passed this spring, along with those that were sent to study and were killed. If you have any questions, please do not hesitate to contact me.
PASSED
LLC tax
Chapter 207 (formerly SB 125): permitting the deduction of personal services from the business profits tax and altering the burden proof. This law permits a deduction from gross business profits of a proprietorship, partnership, or limited liability company of all amounts that are fairly attributable to the actual personal services of the proprietor, partner, or member. Such amounts shall not exceed the amount reported as earned income on the federal income tax returns of the proprietor, partner, or member, but may also include an amount not to exceed net rental income as compensation for operating rental property, and an amount not to exceed 15 percent of the gross selling price as commissions on the sale of business assets. The bill refers to Internal Revenue Code for guidance on what constitutes "fair and reasonable" compensation. It also creates a $50,000 safe-harbor without the need for substantiation. "A business organization claiming a deduction under this paragraph shall bear the burden of proving that all proprietors, partners, or members for whom a deduction is being claimed provided actual personal services to the business organization at any time during the taxable period. Once a business organization has satisfied this burden of proof, the amount claimed as a deduction shall be presumed to be reasonable, unless the commissioner proves by a preponderance of the evidence that the deduction claimed by the business organization is clearly unreasonable." This law went into effect June 25, 2011 without the governor's signature.
Tax Abatements
Chapter 206 (HB 316): preserves the right to contest real estate tax assessments if the property owner fails to file an inventory form. While the final version of this bill says no person who fails to file an inventory form shall "lose the right to apply for, or appeal the denial of, any other type of tax relief," a specific reference to the statute concerning the assessment of real estate for tax purposes was deleted. I still think this is a big victory for taxpayers, but keep an eye open for how this law is applied. This law went into effect July 24, 2011.
Chapter 224 (HB 2): This law reduces the number of board of tax and land appeals members from 4 to 3, eliminates the requirement that one member be an attorney, reduces the terms from 5 years to 3, and gives the appointments to the governor and council rather than the supreme court. This law went into effect July 15, 2011.
Evictions
Chapter 208 (formally HB 173): permitting commercial (only) landlords to serve a Demand for Rent or Eviction Notice on tenants at the leased property, provided a copy also be sent by certified mail to the tenant's last known address if the tenant is a New Hampshire resident or entity; otherwise, the "long-arm" procedures of RSA 510:4 must be followed. In passing this bill, the General Court apparently interprets "last and usual place of abode" for commercial tenants as being the leased premises. This law creates greater certainty for commercial landlords on how to serve tenants. The law goes into effect January 1, 2012.
Chapter 247 (SB 70): Shortens from 28 to 7 the number of days a landlord must store property left behind by a residential tenant. The landlord may not assess rent or storage charges during this seven-day period. Landlords who violate this statute shall be liable for the tenant's actual damages, plus costs and reasonable attorneys' fees, rather than a minimum of $1,000. These changes take effect January 1, 2012. Chapter 247 also repeals the $1,000 civil penalty on landlords of residential property who fail to provide the town clerk with the name and address of an agent authorized to accept service on their behalf. This revision went into effect July 13, 2011.
Condominium referral fee disclosures
Chapter 96 (formerly HB 298): requiring property managers to disclosure referral fees from vendors and fees received from unit owners unless those fees are set forth in the management contract. The bill also requires contractors who perform work on a unit to disclose referral fees passed through to the unit owner. The law goes into effect January 1, 2012.
Involuntary lot consolidations
Chapter 206 (HB 316): permitting the restoration of lots that had previously been consolidated involuntarily. The law gives owners of previously involuntarily merged lots until December 31, 2016 to request the lots be restored to their pre-merger status. It went into effect July 24, 2011.
Real estate closings
Chapter 179 (formerly SB 42): requiring both sellers and buyers to file separate Declarations of Consideration (Form CD-57) within thirty days following real estate closings. Currently, both parties sign the same form and it is the buyer's duty to file the form with the Department of Revenue Administration. The law goes into effect August 13, 2011.
Tax credits and holding property in trust
Chapter 138 (formerly HB 541): expands the definition of "owner," "owned" or "own," when applied to certain real estate tax credits, to include those who have placed their property in a grantor/revocable trust orwho have equitable title or the beneficial interest for life in the subject property. The law went into effect April 1, 2011.
Serving on more than one municipal board
Chapter 190 (HB 409): "In the case of towns, any two appointed or elected members of the planning board may also serve together on any other municipal board or commission, except that no more than one member of theplanning board shall serve on the conservation commission, the local governing body, or a local land useboard as defined in RSA 672:7." This law goes into effect August 13, 2011.
Commission to study business regulations in New Hampshire
Chapter 263 (HB 248): The committee must issue a final report by October 31, 2012.
Purchasers at short sales exempt from regulation as foreclosure consultants
Chapter 145 (SB 111)
Shoreland Protection Act (now known as the Shoreland Water Quality Protection Act)
Chapter 224 (HB 2). These changes formerly were part of SB 154. Some key features of the sweeping changes made to the Shoreland Protection Act:
Name changed to Shoreland Water Quality Protection Act.
The tree scoring system applicable within the waterfront buffer (the area within 50' of the water)
is revised to increase credit for larger, more mature trees and to encourage the planting of shrubs and groundcover.
Limitations on the percentage of impervious coverage is relaxed, provided storm-water management systems are designed and implemented to encourage storm-water infiltration and to control runoff and erosion.
The review periods afforded to the Department of Environmental Services (DES) are shortened for faster decision making.
Projects having no impact on water quality and follow DES rules will be eligible for a new permit-by-notification process.
The standards applicable to the redevelopment of existing, nonconforming structures is rewritten
to allow greater flexibility for landowners. Existing structures can be repaired, replaced in kind, and reconstructed in place. The alteration and expansion of nonconforming structures is also permitted, provided the structure is changed in a manner that makes it more nearly conforming to the standards of the Act.
SENT TO STUDY
Click here for key bills that were sent study. The legislature will need to take action on these bills before the end of the year.
DEAD
Click here for key bills that were killed.
