New Hampshire

Property Classification:

The New Hampshire statutes do not specifically dictate different classes of property that are subject to different assessment ratios or tax rates. However, property may fall into the following classifications:

(1) residences in industrial or commercial zones;

(2) farm, forest, and open-space land assessed under current use provisions; and

(3) property that qualifies for conservation restriction assessment.

To encourage the preservation of open space in the state and to maintain its landscape, the state provides for the assessment of open-space land on the basis of its current use.

Land qualifying for open-space assessment includes:

• farm land, forest land, or unproductive land (including wetlands) totaling 10 or more acres;

• a tract of any combination of farm land, forest land or unproductive land, totaling 10 or more acres;

• a tract of undeveloped land of any size, actively devoted to the growing of agricultural or horticultural crops having an annual gross income of at least $2,500;

• a certified tree farm of any size; or

• a tract of unimproved wetland of any size.

Forest land shall be one or more of the following:

1. A tract of undeveloped land, which is actively devoted to or capable of growing trees of any age including the production or enhancement of one the following: (a) Forest products; (b) Maple sap; (c) Naturally seeded Christmas trees; or (d) Wildlife or wildlife habitat.

2. A certified tree farm.

Land containing roads constructed for the purpose of forest product removal or forest protection shall be assessed as forest land. Forest land that has been subjected to clear cutting shall still qualify as forest land.

Forest land Classification:

Forest land shall be classified to a minimum of 10 acres in accordance with the majority of the type of trees growing on the land. Once the dominant forest type has been determined, forest types of less than 10 acres shall be classified with the dominant forest type.

Forest land classifications shall be as follows:

1. White pine - which means those forest stands in which white pine trees make up the majority of the stocking;

2. Hardwood - which means those forest stands in which any combination of hardwood trees listed below, along with other less common hardwood species make up the majority of the stocking:

a. Red oak;

b. Sugar maple;

c. Yellow birch; and

d. White birch; or

3. All other - which means those forest stands in which tree species not included in (1) and (2) above, make up the majority of the stocking.

Valuation and Assessment:

Land classified as forest land is valued on its current use as forest land and is assessed differently depending on the level of stewardship being practiced and documented (effective as of April 1, 2019).

Forest land Classification	Assessment range for forest land w/out documented stewardship	Assessment range for forest land with documented stewardship
White Pine	$118 to $176 per acre	$71 to $106 per acre
Hardwood	$57 to $86 per acre	$34 to $52 per acre
All Other	$38 to $57 per acre	$23 to $34 per acre

Source: State of New Hampshire Current Use Criteria Booklet for April 1, 2019 to March 31, 2020. https://www.revenue.nh.gov/current-use/documents/2019-booklet.pdf

The current use value is reduced by 20% if the land is open 12 months a year to public recreation use, without entrance fee.

To qualify for assessment under the forest land with documented stewardship category the following three items must be submitted with a current use application: (1) a statement of past forestry accomplishments, including an explanation of any deviation from past plans; (2) an updated map; and (3) documentation of a certified tree farm, or a forest stewardship plan signed by a licensed forester.

Land use change tax - When land classified as open space is changed to a use that does not qualify for an open-space assessment, it is subject to a land use change tax. The use change tax must be assessed as of the date that the development began. Underdeveloped land that qualified as open-space land because the yearly agricultural income did not exceed $2,500 in four of the last five years is subject to the land use change tax.

The land use change tax is assessed at the rate of 10% of the full and true value of the land changed to other than open-space use, determined without regard to the open assessed value of the land or any equalized value used by the municipality in which the land is located. The tax is in addition to the annual real estate tax and is due and payable upon the change in land use.

The full and true value of land that no longer qualifies as open space is based upon the highest and best use of the land, including the value of all "betterments." Betterment to the land includes the installation or construction of improvements that influence the value of the land, such as roads, water lines, utility lines, or other physical improvements.

The normal yield tax is assessed at the rate of 10% of the stumpage value at the time of cutting wood or timber (RSA 79:3).

The normal yield tax is assessed at the rate of 10% of the stumpage value at the time of cutting wood or timber (RSA 79:3).

Exceptions: Fruit trees, sugar orchards, nursery stock, Christmas trees, and trees maintained only for shade or ornamental purposes or for genetically-engineered short rotation tree fiber are not subject to yield tax.

Notice of intent to cut: At the beginning of each tax year (April 1st) and prior to the commencement of each cutting operation, any owner intending to cut or intending to allow another to cut growing wood and timber must file a notice of intent with the proper assessing officials in the town where the cutting is to take place.

Report of cut wood: All owners of wood and timber who have filed a notice of intent to cut must file, within 60 days after an operation is complete, a report of all wood and timber cut. The cutting of growing wood and timber during an operation that was not supported by a notice of intent to cut must also be stated on the report.

The reports must contain the name, residence, and social security number of the owner, volume of wood and timber cut by species or species group and primary products, and other information as necessary to enable the assessing officials to locate, identify, verify and determine the full amount and true stumpage value of the wood and timber cut.

Penalty for failure to file: If an owner neglects or fails to file a report of cut, unless the time is extended by the assessing officials, the assessing officials will assess two times as much as the wood and timber would have been taxed if a report been seasonably filed and truly reported.

Exemptions: Exempt from the normal yield tax and from filing intents to cut are the following:

1. A person who cuts up to a maximum of 10,000 board feet of logs per tax year from his own land for construction, reconstruction or alteration of his or her own buildings and fences, with the restriction that the buildings cannot be built for sale purposes;

2. A person who cuts or causes to be cut up to 20 cords of fuel wood per tax year for his or her own in-state consumption for domestic fuel purposes, or any amount of wood for the manufacture of maple sugar or syrup;

3. Federal and state government, cities, towns, school districts, and other political subdivisions that cut wood or timber for their own use on land under their ownership or jurisdiction or both; and

4. Persons who clear or maintain rights-of-way or water storage reservoir areas to supply utility or transportation services to the public, with certain restrictions.

• New Hampshire Department of Revenue Administration. State of New Hampshire Current Use Criteria Booklet. https://www.revenue.nh.gov/current-use/booklets.htm

• University of New Hampshire Cooperative Extension. Overview of Current User Assessment RSA 79-A. https://extension.unh.edu/resource/overview-current-use-assessment-rsa-79

• University of New Hampshire Cooperative Extension. Forest Stewardship and Current Use: A Primer. https://extension.unh.edu/resources/files/Resource000206_Rep224.pdf