Community Revitalization Tax Relief Incentive
This program encourages investment in central business districts, neighborhood business districts, downtowns, and village centers. Its goal is to encourage the rehabilitation and active reuse of underutilized buildings and in doing so:
- Promote strong local economies and,
- Promote smart, sustainable growth, as an alternative to sprawl, in accordance with the purpose and objectives of RSA Chapter 9-B (State Economic Growth, Resource Protection, and Planning Policy).
How it works:
- In a municipality that has adopted this enabling legislation, a property owner who wants to substantially rehabilitate a building located in a designated district may apply to the local governing body for a period of temporary tax relief.
- The temporary tax relief, if granted, would consist of a finite period of time during which the property tax on the structure would not increase as a result of its substantial rehabilitation. In exchange for the relief, the property owner grants a covenant ensuring there is a public benefit to the rehabilitation.
- Following expiration of the finite tax relief period, the structure would be taxed at its full market value taking into account the rehabilitation.
The legislation offers strong community process and discretion:
- Any city or town may adopt this program with the majority vote of its legislative body.
- Applications by property owners are made to the governing body and are accompanied by a public notice and public hearing.
- The governing body may grant tax relief if the application meets the guidelines and public benefit test.
- The governing body may deny the application in its discretion: “such denial shall be deemed discretionary and shall not be set aside by the Board of Tax and Land Appeals or the Superior Court except for bad faith or discrimination.” (79-E:4 V)
Qualifying properties:
A property owner can apply for the tax relief only if:
- The building is located in the Historic Overlay District or Downtown Commercial District.
- The rehabilitation costs at least 15% of the building’s pre-rehab assessed value, or $75,000, whichever is less, and
- The rehabilitation is consistent with the municipality’s Master Plan or development regulations.
The Town of Bristol has designated the Historic District and the Downtown Commercial District as the Community Revitalization Zone. The map showing the properties included can be viewed HERE. If you are interested in applying, please take a moment to review the Application Packet.
For any questions regarding this program, please contact the Land Use Manager, (603)744-3354 x 112.