The capitalization rate, or cap rate, represents the rate of return on an income-producing property when applied against the purchase price. One could say, therefore, a high cap rate is a “good” thing. If so, then why does a high cap rate mean a higher risk investment? The cap rate is calculated by dividing the net operating income by the … [Read more...]
Sales Taxes on Internet Sales to New Hampshire Residents
One of the ways that New Hampshire distinguishes itself from other states is that we do not have a general sales tax. This is part of the “New Hampshire Advantage.” There has been a great deal of attention to the issue of sales taxes on internet sales with the recent U.S. Supreme Court ruling in South Dakota v. Wayfair, Inc. This was followed by … [Read more...]
Private Road Maintenance – Live Free or Die in Action!
For the third year in a row, a bill (SB 401) was introduced in New Hampshire to require owners of residential real estate on private roads to contribute toward the maintenance of the road. For the third year in a row, the bill failed. The effort has been led by realtors, who point out Fannie Mae will not buy loans secured by houses on private … [Read more...]
Airbnb – Permitted or Prohibited?
In recent years, the tourism industry has seen the rise of internet-based, short-term rental by owner sites and apps, such as Airbnb and VRBO. These short-term rental options allow property owners and tenants (when permitted under certain circumstances) to directly lease or rent their property on a short-term basis to interested lessees; and … [Read more...]
N.H. SUPREME COURT RULES THAT STATUTE ALLOWS A WINDFALL TO MUNICIPALITIES FOR TAX SALES BEYOND THREE YEARS FROM TAX DEED
In the case of Polonsky v. Town of Bedford, decided on June 28, 2018, the N.H. Supreme Court considered the interpretation of amendments to the alternative lien procedures statutes found in RSA 80:88-91. These statutes were enacted in response to Thomas Tool v. Croydon, 145 N.H. 218 (2000), in which the Court held that it was unconstitutional for … [Read more...]
Celebrating Summer: What Fireworks Are Legal on Your Land?
Summer in New Hampshire is synonymous to some residents with bonfires, camping, and—of course—fireworks. For years, New Hampshire has been the most liberal state in the Northeast with regards to access of residents and visitors to fireworks. But what “fireworks” are permitted for use on New Hampshire properties according to the law? And under what … [Read more...]
Construction Contract without Plans and Specs? Bad Idea.
A couple had a rent-to-own agreement with a third party for a house, pursuant to which they had accumulated some equity. They agreed to relinquish that agreement, forgo their equity, and help a licensed realtor, Michael Fowler, purchase the house, which he did. The couple also entered into an oral agreement with Fowler for him to build them a new … [Read more...]
SUPREME COURT ABOLISHES LIMITS TO SALES TAXES ON INTERNET SALES
On June 21, 2018 the U.S. Supreme Court decided South Dakota v. Wayfair, Inc. creating a paradigm shift in the way in which state sales taxes will be collected by remote retailers. In a 5-4 decision, in a majority opinion written by Justice Anthony Kennedy, the Court overruled the physical presence rule which prevented a state from imposing an … [Read more...]
Are You Required to Give Financial Statements to Your Municipality?
In the context of real estate tax assessments in New Hampshire, the answer is “No.” We have seen tax assessors in some municipalities, such as Portsmouth, request income and expense information from at least some commercial landlords. Owners turn the information over, likely under the assumption they are required to do so. In fact, this … [Read more...]
A Brief Overview of Land Use Appeals
Local land use boards, such as zoning boards and planning boards, issue decisions on applications—such as site plan applications, subdivision applications, variances, and special exceptions—based on the information presented by the applicant(s) and considered in accordance with state law and local ordinance provisions. Boards may reject or deny … [Read more...]
Commercial Leases – When Should a Landlord Sue?
Let’s say your tenant signed a lease on September 1, never took possession, and made two monthly payments before stopping. Most commercial leases would give the landlord the right to terminate the lease, evict the tenant and sue immediately for the balance due. Many also give the landlord the option to keep the lease in effect and recover rent … [Read more...]
New Hampshire’s Research and Development Tax Credit
New Hampshire’s Research and Development Tax Credit is available to businesses with “qualifying research and manufacturing expenditures.” The credit is based upon the wages paid to individuals engaged in “discovering information which constitutes qualified research and development of a new or improved manufacturing process or business component of … [Read more...]
Appraisers and “Extraordinary Assumptions”
Appraisers often serve as expert witnesses in tax abatement matters. The more money at stake, the more likely the parties will need appraisers. When used in that manner, an appraiser is considered an expert witness. Expert witnesses are used to assist the judge, appeals board or other tribunal of technical matters and conclusions beyond the … [Read more...]
Local Land Use Law: A Brief Introduction, Part II
Zoning Boards of Adjustment (“ZBA’s”) New Hampshire municipalities are permitted to establish zoning boards of adjustment, or ZBA’s, by statute. Every zoning ordinance adopted by a local legislative body must include provisions for the establishment of a ZBA to enforce the local ordinance. RSA 673:1. Members of the ZBA Each ZBA must … [Read more...]
New Hampshire Planning Boards: A Brief Introduction
Another staple land use boards in most New Hampshire municipalities is the Planning Board. Planning Boards are statutorily regulated, and the powers of a Planning Board are specifically defined under the language of each individual municipal ordinance. Makeup of Planning Boards Planning Boards may be established by local legislative bodies. … [Read more...]
Supreme Court Considers Limits to Sales Taxes on Internet Sales
On April 17, 2018, while many taxpayers scramble to meet the deadline for filing their federal income tax returns, the U.S. Supreme Court will hear oral arguments in South Dakota v. Wayfair, Inc., a case that could forever alter the way in which state sales taxes are collected by remote retailers. The battle that is being waged between states and … [Read more...]
Extraordinary Assumptions – a Handy Tool for Real Estate Appraisers
Most real estate tax abatement cases heading to a final hearing require the testimony of an appraiser. Two, in fact: one for the taxpayer, and one for the taxing authority. Sometimes there is even a third appraiser, who gives his or her opinion as to the quality of one or the other reports prepared by the appraisers prior to the … [Read more...]
Local Land Use Law: A Brief Introduction, Part I
New Hampshire’s system of government is best captured by our state motto: “Live Free or Die.” In comparison to other states, including neighboring states in New England, New Hampshire emphasizes local governance by empowering municipalities to establish robust local boards to regulate and enforce municipal-specific issues, including local land use … [Read more...]
New Hampshire State and Local Taxes: An Introduction
State and local taxes (“SALT”) are any additional taxes imposed by an individual state and/or locality aside from federal taxes that may apply. Unlike many neighboring states, New Hampshire does not impose traditional income and/or sales taxes, and therefore relies heavily on SALT for revenue. On the local level, SALT generally appears in the form … [Read more...]
Do I need to record a lease in the registry of deeds?
No matter the length of the term, a lease does not need to be recorded in the registry of deeds to be enforceable against the landlord and tenant. The tricky part comes when other parties have claims against the same real estate. For example, if a 10-year lease is executed on March 1 and never recorded, and a mortgage is recorded two weeks later … [Read more...]
Real Property Law: Private Roads Are Getting Public Attention
Originally published in New Hampshire Bar Association News – May 17, 2017 By: Paul Alfano Along with state highways, town-maintained public roads, and non-town-maintained public roads, New Hampshire has something else: private roads. While an important and desirable part of the rural landscape, private roads can lead to certain … [Read more...]
September 2016 Next step in tax abatement process; reverse mortgages; annual NAPTA conference; CIBOR
So You Filed An Abatement Appeal Application... What's Next? The New Hampshire deadline for filing an appeal of a municipal property tax abatement application for the 2015 tax year was September 1, 2016. While the initial push to complete the appeal applications before the deadline is over, many of our clients wonder: what's next? While … [Read more...]
August 2016 Property Rights; Property Tax; Business/Corporate Law
Pokemon Go? Not On My Property! One of the most notable trends of 2016 thus far is undoubtedly Pokemon Go. The craze has swept the world, and smart phone users everywhere are wandering the streets looking for Pokemon. But what happens when players venture onto private property? Unfortunately for many players, property laws remain unchanged … [Read more...]
June 2016 Assemblage not permitted; two new transfer tax exemptions; Right to an appraisal; Wentworth by the Sea easement; Alfano speaks to title insurance group.
Assemblage is not permitted for assessment purposes Assessors may not "assemble" lots under current ownership for valuation purposes if the lots do not adjoin. Being connected by a private way is not sufficient. See Appeal of David H. Johnson, 161 N.H. 419 (2011). Two new transfer tax exemptions. As of this writing, HB 1656 has passed … [Read more...]
Paul Alfano and Phil Hastings to co-host a Lunch & Learn series on Tax Abatements
Paul Alfano and Phil Hastings will co-host a session of the popular Lunch & Learn series at the Concord Chamber of Commerce on Tuesday, January 19, 2016 11:45 AM thru 01:00 PM. This session will include information on the basics of tax abatement including contesting, documenting, and filing your tax abatement before the March 1st … [Read more...]