Allows the town council of Portsmouth, by ordinance or resolution, to exempt Quaker Manor from valuation for taxation or to enter into tax abatement or payment in lieu of taxes agreements.
Impact
The passage of SB 2598 would directly impact existing property taxation laws in the town of Portsmouth by introducing a local option for tax exemptions specifically for Quaker Manor. It empowers the town council to make decisions that could enhance the financial viability of affordable housing within the community, potentially inspiring similar actions in other municipalities. By allowing the council discretion in how taxes are applied to properties benefiting low-income families, the bill could lead to increased stability and improved living conditions for its residents.
Summary
Senate Bill 2598 allows the Town Council of Portsmouth to exempt a specific property known as 'Quaker Manor' from valuation for taxation. This bill is particularly significant as it aims to facilitate tax abatements or payments in lieu of tax agreements for properties occupied by low- or moderate-income families. The legislation is introduced as a targeted measure to address the financial burden of taxation on housing that serves vulnerable populations, thereby helping to stabilize their living conditions and promote affordability.
Contention
While the bill passed unanimously in the legislature, discussions may arise surrounding the implications for local revenues and the long-term sustainability of such tax exemption practices. Some taxpayers and local businesses might express concerns about the impact of these exemptions on the overall tax base and their potential for setting a precedent that could lead to broader tax exclusion measures. Nevertheless, supporters argue that the benefits of supporting low-income housing far outweigh the drawbacks, fostering a sense of community and belonging for disadvantaged families.