State revenue got a helpful one-time shot in the arm. Now what?
Analysts fear that once it’s gone for the remainder of the fiscal year, overall revenue will lag unless other accounts, which have been underperforming to date, pick up the pace
New Hampshire’s education property tax rebate doesn’t amount to much
Eligible homeowners receive an average of less than $200
The New Hampshire Department of Revenue Administration is reminding low-and moderate-income property-tax payers that they have until the end of June to apply for a rebate on their 2020 property tax bills – but the program applies only to the Statewide Education Property Tax and not to either the local school property tax or municipal property tax, which make up the bulk of a homeowner’s tax bill.
While local property taxes are levied at variable rates according to the assessed valuation of municipalities, the Statewide Education Property Tax, or SWEPT, is levied at a fixed rate sufficient to raise $363 million.
The SWEPT was introduced in 1999 at a rate of $6.60, which two years later was reduced to $4.92. Since 2005, the rate has been set at a level to raise $363 million. As property values have risen, the original rate of $3.33 has fallen to the current rate of $1.825 in 2021.
The state rebate applies only to the first $100,000 of the assessed value of the property.
To qualify for the program, a single homeowner must have annual income of $20,000 or less and $40,000 or less if the head of household. Claimants must apply for a rebate between May 1 and June 30 following the due date of the tax bill, a narrow window.
Rebates for individuals range from 100% of the bill for those earning less than $12,500 to 20% for those earning between $17,500 and $20,000. For households, rebates range from 100% of the tax bill for those with income of less than $25,000 to 20% for those with incomes between $35,000 and $40,000.
With a SWEPT rate of approximately $1.825 per $1,000, the 100% rebate for either singles or households amounts to less than $200. The rebate to a married head of household earning $35,000 with a $200,000 home would be $40.
The New Hampshire Fiscal Policy Institute reported that in 2018 property tax levies amounted to approximately $2,800 per capita, while the average property tax rebate paid to low- and moderate-income individuals and households was $160.
Homeowners who pay their taxes in July and December of one year can then apply for a rebate in May or June of the next year and receive a rebate within 120 days.
In 2003, when the program was introduced 27,208 homeowners received $7.5 million in property tax relief, but by 2018 the number of claimants had shrunk to 6,685 who altogether received $1.1 million in rebates. In 2020, rebates totaled $886,700. Since the program began, nearly $45 million has been distributed in rebates.
The application form (Form DP-8) is available on NHDRA’s website. Program applicants are required to submit their individual income tax returns with the application.
