What it means: In Hampton, we have real estate tax exemptions that are granted to lower-income older residents to assist with their tax burden, to allow them to remain in their homes. The way it works is the amounts referenced in the chart below are taken off the assessed value of the home prior to calculating the taxes for that property. There are net income and net asset limitations, since the program is meant to help those in need. The net income test includes but is not limited to Social Security, pension payments and IRA distributions.
For perspective, in 2022 (the most recent year published by the state of NH as of this writing), exemptions reduced the Town’s taxable valuation by roughly $30 Million, of which the elderly exemption represents 90%. This was equivalent to about $430,000 in tax expense that was redistributed to other taxpayers.
The Article as revised at Deliberative Session indicates that if Article 29 passes, Article 33 (a petitioned Warrant Article) would be null and void. That is because the two articles deal with the same topic, with different qualifying income and asset limitations. They could not both be enacted. Below is a chart that compares the two proposals:
Those in favor say: Hampton will have a regularly scheduled revaluation of property values this year. If the value of the exemptions are not raised, some people who would otherwise qualify for the exemption would be excluded and could be in danger of losing their homes if the increased real estate taxes could not be paid.
Those opposed say: There was no voiced disagreement with the intent of this Article, but there was a lot of discussion about the appropriate new levels to use. The dollar amounts shown for Article 29 are the ones agreed to at Deliberative Session.
Fiscal impact: There is no direct tax impact, but to the degree that this Article, if approved, reduces the taxable base, it will mean that other mostly younger taxpayers will pick up the difference.