New Hampshire Revised Statutes 78-B:2 – Exceptions
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The tax imposed by this chapter shall not apply:
I. To a transfer of title to the state, a state agency, a county, a city, a town, a school district, or a village district.
II. To the United States, or any agency or instrumentality thereof.
III. To a mortgage or other instrument given to secure payment of a debt or obligation.
IV. To a discharge of mortgage or other instrument solely to release security for a debt or obligation.
V. To a deed or other instrument which corrects a deed or other instrument previously given.
VI. To a deed given by a collector of taxes for property purchased at a tax sale.
VII. To a transfer of title from one organization exempt from federal taxation under section 501 of the United States Internal Revenue Code of 1986, as amended, to another organization which is also exempt from federal taxation under section 501, when both the transfer organization and the transferee organization are created by or result from the corporate reorganization of a licensed, general, or specialty hospital.
VIII. To a transfer of title to the Trust for New Hampshire Lands when the Trust for New Hampshire Lands acquires the real estate for the purpose of transferring title to the real estate so acquired to the land conservation investment program, RSA 221-A, prior to June 30, 1993. The exception provided in this paragraph shall only apply to the Trust for New Hampshire Lands. The seller, grantor, assignor, or transferor of any real estate to the Trust shall still be liable for payment of the tax imposed by N.H. Rev. Stat. § 78-B:1.
IX. To noncontractual transfers.
X. To transfers of cemetery plots.
XI. To transfers that occur by devise or by other testamentary disposition, or by the laws regulating intestate succession and descent, or by the death of any cotenant in real estate held by joint tenancy; regardless of any consideration paid or obligation assumed by the transferee.
XII. To the beneficiary of a partnership interest where the partnership dissolves by operation of law due to the death of a partner.
XIII. To a transfer of title between spouses pursuant to a final decree of divorce or nullity.
XIV. [Repealed.]
XV. To an otherwise taxable transfer between a land trust, incorporated under N.H. Rev. Stat. Chapter 292 and established to provide affordable housing to low-income people, and a housing cooperative, incorporated under RSA 301-A, if the transfer tax is paid by the trust on the initial purchase of the property.
XVI. [Repealed.]
XVII. [Repealed.]
XVIII. To a deed transferred in accordance with N.H. Rev. Stat. § 80:89, VI.
XIX. [Repealed.]
XX. To a lease, including any sales, transfers, or assignments of any interest in the leased property, where the term of the lease, including all renewals, is less than 99 years.
XXI. (a) To a transfer of title provided that:
(1) The transfer of title, where no consideration is exchanged, is coincidental to a change in the transferor’s form of organization to that of the transferee;
(2) As a result of the change in the transferor’s form of organization, the assets and liabilities of the transferor immediately preceding the change in form of organization and the assets and liabilities of the transferee immediately following the change in form of organization are the same; and
(3) At the time of the transfer of title, the owner or owners of the transferor and the owner or owners of the transferee, and the respective ownership percentages of each, are identical.
(b) For the purpose of this paragraph, a beneficial interest in a trust shall be considered an ownership interest in such trust.
XXII. To a transfer of title from the owners of an entity to the entity, or from the entity to the owners of the entity; provided that:
(a) No consideration is exchanged for the transfer of the real estate; and
(b) The direct or indirect owners of the parties to the transfer remain the same before and after the transfer of the real estate, the respective ownership percentages of each are identical, and the combined assets and liabilities of the transferor and transferee remain the same except with respect to the real estate.
XXIII. (a) To a direct or indirect transfer of an interest in real property, provided that the real estate transfer tax was paid by the buyer or seller, or an affiliate of either, when the real property title was acquired, unless otherwise exempt pursuant to this section, and the transfer is made in connection with the commencement, syndication, development, re-syndication, or conclusion of investment financing related to any of the following:
(1)(A)(i) A federal low-income housing tax credit project, as defined in Section 42 of the Internal Revenue Code of 1986, as amended; or
(ii) A project funded with federal grants made to states for low-income housing projects in lieu of low-income housing tax credits under Section 1602 of the American Recovery and Reinvestment Act of 2009 ;
(B) Provided that the project under subparagraph (A)(i) or (A)(ii) remains subject to an extended low-income housing commitment in accordance with the provisions of Section 42(h)(6) of the Internal Revenue Code of 1986, as amended.
(2) A Rental Assistance Demonstration (RAD) public housing conversion under the federal Consolidated and Further Continuing Appropriations Act of 2012, as amended.
(3) Such other federal, state, or local financing program requiring that the real estate remains subject to land use restriction and rental housing affordability covenants which limit allowable rents charged to individuals or families, consistent with (i) N.H. Rev. Stat. § 674:58, IV, pertaining to workforce housing; or (ii) as otherwise required under the applicable federal, state, or local program.
(b) For purposes of this paragraph, “affiliate” means any entity which controls or is controlled by, or is under common control with, another entity. For purposes of this definition, an entity controls another entity when the first entity possesses or exercises directly, or indirectly through one or more other affiliates or related entities, the power to direct the management and policies of the other entity, whether through the ownership of voting rights, membership, or the power to appoint members, trustees, or directors, by contract or otherwise.
XXIV. To a lease of any term by and between the Pease development authority and any other person, including any sales, transfers, or assignments of any interest in the leased property.
I. To a transfer of title to the state, a state agency, a county, a city, a town, a school district, or a village district.
Terms Used In New Hampshire Revised Statutes 78-B:2
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Devise: To gift property by will.
- following: when used by way of reference to any section of these laws, shall mean the section next preceding or following that in which such reference is made, unless some other is expressly designated. See New Hampshire Revised Statutes 21:13
- Grantor: The person who establishes a trust and places property into it.
- Intestate: Dying without leaving a will.
- Joint tenancy: A form of property ownership in which two or more parties hold an undivided interest in the same property that was conveyed under the same instrument at the same time. A joint tenant can sell his (her) interest but not dispose of it by will. Upon the death of a joint tenant, his (her) undivided interest is distributed among the surviving joint tenants.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- person: may extend and be applied to bodies corporate and politic as well as to individuals. See New Hampshire Revised Statutes 21:9
- real estate: shall include lands, tenements, and hereditaments, and all rights thereto and interests therein. See New Hampshire Revised Statutes 21:21
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- state: when applied to different parts of the United States, may extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall include said district and territories. See New Hampshire Revised Statutes 21:4
- United States: shall include said district and territories. See New Hampshire Revised Statutes 21:4
II. To the United States, or any agency or instrumentality thereof.
III. To a mortgage or other instrument given to secure payment of a debt or obligation.
IV. To a discharge of mortgage or other instrument solely to release security for a debt or obligation.
V. To a deed or other instrument which corrects a deed or other instrument previously given.
VI. To a deed given by a collector of taxes for property purchased at a tax sale.
VII. To a transfer of title from one organization exempt from federal taxation under section 501 of the United States Internal Revenue Code of 1986, as amended, to another organization which is also exempt from federal taxation under section 501, when both the transfer organization and the transferee organization are created by or result from the corporate reorganization of a licensed, general, or specialty hospital.
VIII. To a transfer of title to the Trust for New Hampshire Lands when the Trust for New Hampshire Lands acquires the real estate for the purpose of transferring title to the real estate so acquired to the land conservation investment program, RSA 221-A, prior to June 30, 1993. The exception provided in this paragraph shall only apply to the Trust for New Hampshire Lands. The seller, grantor, assignor, or transferor of any real estate to the Trust shall still be liable for payment of the tax imposed by N.H. Rev. Stat. § 78-B:1.
IX. To noncontractual transfers.
X. To transfers of cemetery plots.
XI. To transfers that occur by devise or by other testamentary disposition, or by the laws regulating intestate succession and descent, or by the death of any cotenant in real estate held by joint tenancy; regardless of any consideration paid or obligation assumed by the transferee.
XII. To the beneficiary of a partnership interest where the partnership dissolves by operation of law due to the death of a partner.
XIII. To a transfer of title between spouses pursuant to a final decree of divorce or nullity.
XIV. [Repealed.]
XV. To an otherwise taxable transfer between a land trust, incorporated under N.H. Rev. Stat. Chapter 292 and established to provide affordable housing to low-income people, and a housing cooperative, incorporated under RSA 301-A, if the transfer tax is paid by the trust on the initial purchase of the property.
XVI. [Repealed.]
XVII. [Repealed.]
XVIII. To a deed transferred in accordance with N.H. Rev. Stat. § 80:89, VI.
XIX. [Repealed.]
XX. To a lease, including any sales, transfers, or assignments of any interest in the leased property, where the term of the lease, including all renewals, is less than 99 years.
XXI. (a) To a transfer of title provided that:
(1) The transfer of title, where no consideration is exchanged, is coincidental to a change in the transferor’s form of organization to that of the transferee;
(2) As a result of the change in the transferor’s form of organization, the assets and liabilities of the transferor immediately preceding the change in form of organization and the assets and liabilities of the transferee immediately following the change in form of organization are the same; and
(3) At the time of the transfer of title, the owner or owners of the transferor and the owner or owners of the transferee, and the respective ownership percentages of each, are identical.
(b) For the purpose of this paragraph, a beneficial interest in a trust shall be considered an ownership interest in such trust.
XXII. To a transfer of title from the owners of an entity to the entity, or from the entity to the owners of the entity; provided that:
(a) No consideration is exchanged for the transfer of the real estate; and
(b) The direct or indirect owners of the parties to the transfer remain the same before and after the transfer of the real estate, the respective ownership percentages of each are identical, and the combined assets and liabilities of the transferor and transferee remain the same except with respect to the real estate.
XXIII. (a) To a direct or indirect transfer of an interest in real property, provided that the real estate transfer tax was paid by the buyer or seller, or an affiliate of either, when the real property title was acquired, unless otherwise exempt pursuant to this section, and the transfer is made in connection with the commencement, syndication, development, re-syndication, or conclusion of investment financing related to any of the following:
(1)(A)(i) A federal low-income housing tax credit project, as defined in Section 42 of the Internal Revenue Code of 1986, as amended; or
(ii) A project funded with federal grants made to states for low-income housing projects in lieu of low-income housing tax credits under Section 1602 of the American Recovery and Reinvestment Act of 2009 ;
(B) Provided that the project under subparagraph (A)(i) or (A)(ii) remains subject to an extended low-income housing commitment in accordance with the provisions of Section 42(h)(6) of the Internal Revenue Code of 1986, as amended.
(2) A Rental Assistance Demonstration (RAD) public housing conversion under the federal Consolidated and Further Continuing Appropriations Act of 2012, as amended.
(3) Such other federal, state, or local financing program requiring that the real estate remains subject to land use restriction and rental housing affordability covenants which limit allowable rents charged to individuals or families, consistent with (i) N.H. Rev. Stat. § 674:58, IV, pertaining to workforce housing; or (ii) as otherwise required under the applicable federal, state, or local program.
(b) For purposes of this paragraph, “affiliate” means any entity which controls or is controlled by, or is under common control with, another entity. For purposes of this definition, an entity controls another entity when the first entity possesses or exercises directly, or indirectly through one or more other affiliates or related entities, the power to direct the management and policies of the other entity, whether through the ownership of voting rights, membership, or the power to appoint members, trustees, or directors, by contract or otherwise.
XXIV. To a lease of any term by and between the Pease development authority and any other person, including any sales, transfers, or assignments of any interest in the leased property.