Shall the Town of Hampton vote to adopt the optional tax credit for combat service under the provisions of RSA 72:28-c in accordance with the procedure of RSA 72:27-a, with said exemption to be $500. The tax credit for combat service shall be subtracted each year from the property tax on the qualifying service member’s residential real estate, as defined in RSA 72:29, II. To qualify for the tax credit for combat service, a person shall be a resident of this state engaged at any point during the taxable period in combat service as a member of the New Hampshire National Guard or a reserve component of the Unites States Armed Forces, called to active duty. For purposes of this section, and in accordance with Internal Revenue Service Publication 3, Armed Forces Tax Guide, “combat service” shall mean military service in one of the following areas: (a) An active combat area as designated by the President in an Executive Order, for which the service member receives special pay for duty subject to hostile fire or imminent danger as certified by the Department of Defense. (b) A support area as designated by the Department of Defense in direct sustainment of military operations in the combat zone, for which the service member receives special pay for duty subject to hostile fire or imminent danger as certified by the Department of Defense. (c) Service in a contingency operation as designated by the Department of Defense, for which the service member receives special pay for duty subject to hostile fire or imminent danger as certified by the Department of Defense. The application for the tax credit shall be accompanied by the service member’s military orders, and shall include such information as may be required for the assessor’s off ice to verify the dates of combat service. The service member shall be eligible for the credit in each tax year in which the combat service occurs, but the credit may be prorated in the second tax year based on the duration of combat service. The tax credit for combat service shall be in lieu of, and not in addition to, the optional veteran’s tax credit under RSA 72:28 or the all veterans’ tax credit under RSA 72:28- b? (Majority vote required)
What it means: This new credit would allow eligible service members to receive an optional $500 property tax credit for combat service under RSA 72:28-c.
This optional $500 property tax credit would be available to eligible service members in the year that they serve in combat as a member of the New Hampshire National Guard or a reserve component of the United States Armed Forces called to active duty in accordance with IRS Publication Guide 3, Armed Forces Tax Guide. Service members would provide required information with their application and once dates of combat service are verified, the service member would be eligible for the credit in each tax year based on the duration of combat service (possibility of proration in the second year based on duration of combat service).
This credit would be in lieu of the other optional veterans tax credits (RSA 72:28or RSA 72:28-b) already offered/available to qualified service members.
Those in favor say: While Hampton has other tax credits this would be an additional offering for those who go to combat zone. The point was made that this credit is not just for those engaging in combat, but for all service members that are called to active duty in a combat zone.
Those opposed say: No one spoke against this Article at Deliberative Session.
Fiscal impact: As a new credit, it is not possible to estimate 2019 costs. It is unknown if and how many current service members will be called to combat service.