The state House of Representatives rejected a bill that would have imposed a .75% tax on second homes worth over $500,000 Thursday.
The bill was soundly defeated. The House voted 284-55 against it after a brief floor debate.
The New Hampshire Municipal Association estimated that the proposal could have generated at least $15 million per year. All receipts would go back to the city or town where the property is located.
Rep. Jonah Wheeler, a Democrat from Peterborough, said years of rising property taxes have for years been pushing residents out of their homes.
“At a time when most people in our state can’t even afford one home – let alone a second home valued over $500,000 that they don’t spend 183 days in – I think a surcharge tax on these non-primary residences is absolutely an appropriate thing for this Legislature to do,” Wheeler said.
Rep. James Tierney, a Republican from Groveton, said the bill falls far short of good public policy. In his majority report on the bill, Tierney also questioned whether it would be constitutional.
Some state lawmakers argued at a hearing in January that the bill would provide more revenue to towns that already have high property values.
“To think Moultonborough needs more school funding than communities like Merrimack, which has few if any second homes, is absurd," said Democratic Rep. Rosemarie Rung on Jan. 12.
At a January hearing, property owners shared their opposition to the bill, and another that would have taxed rental properties.