Best Tax Increment Financing Lawyers in New Hampshire

About Tax Increment Financing Law in New Hampshire, United States

Tax Increment Financing, often known as TIF, is a financial tool used by cities and towns in New Hampshire to promote economic development and revitalization within designated areas, commonly called TIF districts. Through TIF, municipalities invest in public infrastructure and improvement projects, such as roads, utilities, and facilities, using the future increase in property tax revenue generated as property values rise within the district. Rather than relying on existing tax revenue, the incremental tax increase funds the costs of the project, making this a practical method for encouraging growth without immediate burden on taxpayers. TIF districts and operations are governed by state statutes, particularly New Hampshire Revised Statutes Annotated (RSA) Chapter 162-K.

Why You May Need a Lawyer

Engaging in Tax Increment Financing can involve complex legal and financial considerations. Here are several situations where seeking legal advice is recommended:

• If you are a municipality considering establishing a TIF district and need guidance on compliance with state laws
• Property owners or developers wishing to invest in a TIF district and needing help understanding their rights and obligations
• Residents or stakeholders concerned about the impact of a proposed TIF district on their community or personal property taxes
• Questions about interpretation or amendments to TIF development plans, including what improvements are eligible for financing
• Navigating conflicts or disputes that arise between municipal boards, developers, or other interested parties regarding TIF implementation or management
• Ensuring proper public notice, meeting, and voting procedures to avoid potential legal challenges
• Assisting with the negotiation and drafting of development agreements related to the TIF district

Local Laws Overview

Tax Increment Financing in New Hampshire is primarily governed by RSA 162-K. Some key aspects of these laws include:

• Municipalities must hold a public hearing and receive approval by the municipality’s legislative body, typically the town meeting or city council, before establishing a TIF district
• The boundaries of the TIF district and the development program must be clearly defined and publicly documented
• Funds generated by the tax increment must be used exclusively for approved project costs within the TIF district
• A separate account, known as a development program fund, must be established to hold TIF revenues
• The governing body may issue bonds or notes to finance TIF projects, with repayment made from TIF revenues
• Annual reporting on the activities and financial status of the TIF district to the public and oversight authorities is required
• TIF districts may be amended or dissolved through a specific legal process, including public hearing and vote

Frequently Asked Questions

What is Tax Increment Financing?

Tax Increment Financing is a method that allows local governments to fund public improvement projects in a designated area using the projected increase in property tax revenue resulting from those projects.

Who can establish a TIF district in New Hampshire?

City and town governments in New Hampshire can establish TIF districts after a public process and legislative approval.

How are the boundaries of a TIF district decided?

The boundaries of a TIF district are proposed by the municipal governing body and must be approved by the local legislative body after a public hearing.

What types of projects can TIF funds be used for?

TIF funds can be used for a wide range of public infrastructure and improvement projects, such as roads, water and sewer utilities, parking facilities, landscaping, and other public amenities outlined in the TIF development plan.

Will a TIF district increase my property taxes?

TIF does not directly increase property tax rates. Instead, it allocates the increase in tax revenue resulting from rising property values in the TIF district to fund the approved projects. However, overall municipal budgets and tax rates are set by voters and elected officials.

How long does a TIF district last?

The duration of a TIF district varies and is determined by the local governing body based on the needs of the development plan. Districts can be amended or dissolved if goals are achieved or circumstances change.

How is the public involved in the TIF process?

Public involvement is required by law, including public hearings and the opportunity for residents to vote on the establishment, modification, or dissolution of a TIF district.

Can TIF funds be used for private development?

No. While TIF can support public infrastructure that benefits or facilitates private development, funds must be used for public purposes as described in the development plan.

What happens if the TIF district does not generate enough revenue?

If projected increases in property taxes are not realized, the municipality may face financial challenges repaying debt incurred for TIF projects. This risk should be carefully evaluated during the planning process.

How can I find out more about a local TIF district?

You can find information through your municipality’s website, attend public meetings, or request reports from your city or town clerk or the finance department.

Additional Resources

• New Hampshire Municipal Association - Provides educational materials and training for local officials on TIF and other municipal finance issues
• Office of Strategic Initiatives (OSI), State of New Hampshire - Offers guidance to municipalities on economic and community development, including TIF
• New Hampshire Revised Statutes Annotated Chapter 162-K - The full text of the state law governing TIF districts
• Your local city or town clerk’s office and planning department - Primary sources for details about proposed or existing TIF districts in your community

Next Steps

If you are considering Tax Increment Financing for your municipality or have questions about how an existing or proposed TIF district may impact your interests, consider the following steps:

• Gather information about the specific TIF project from your local municipality or planning board
• Attend public hearings and meetings related to the TIF district to stay informed and provide input
• Consult a lawyer with experience in municipal finance, land use, or development law in New Hampshire for tailored legal advice
• Review state and local regulations, particularly RSA 162-K, to understand the legal framework and requirements for TIF districts
• If involved in a development project, work closely with legal and financial advisors to ensure all agreements comply with applicable laws and protect your interests

For the best possible outcome, start by documenting your questions and concerns, and schedule a consultation with a qualified attorney proficient in Tax Increment Financing law in New Hampshire.