RSA 79-E
What is a 79E?
RSA 79-E is a property tax relief program that seeks to encourage investment in town or historic centers and to rehabilitate under-utilized buildings within these areas. It aims to promote strong local economies and smart, sustainable growth as an alternative to sprawl. The application process is made to the governing body by property owners desiring to make improvements that meet 79-E guidelines as well as the public benefit test.
In return, the governing body may provide tax relief at a pre-rehabilitation value for a finite period.
How does a 79E work?
An RSA 79-E applicant must pass three tests in order to qualify for a tax incentive. The applicant must be in an eligible district (as determined by the municipal government), the rehabilitation project must be substantial, and the rehabilitation project must provide at least one public benefit listed in the statute:
- Enhancement of the economic vitality of the downtown; (RSA 79-E:7, I)
- Enhancement or improvement of a culturally or historically important structure; (RSA 79-E:7, II)
- Promotion of the preservation and reuse of existing building stock; (RSA 79-E:7, II-a)
- Promotion of the development of municipal centers, providing for efficiency, safety, and a greater sense of community (RSA 79-E:7, III); or
- Growth of residential housing in urban or town centers. (RSA 79-E:7, IV)
Once a project application is approved, a legal document call the covenant is signed by the owner and the town or city. A covenant is needed to protect the public benefit(s) the project provides and to ensure that the building is maintained. The term of the covenant may be up to twice as long as tax relief period granted. This document is developed by the town or city to protect both the municipality and the owner.
What are the benefits of a 79E?
For Property Owners: If approved, the property owner receives a period of relief from increased property taxes of up to 13 years, depending on the project specifics and the governing body’s discretion. Approval of a 79-E application defers increases in assessed value related to the improvements and refurbishments of the respective building or parcel. It is a way to incentivize the revitalization of properties that are no longer viable or attractive for developers.
For Residents: Properties that may have been vacant for many years are rehabilitated and help to revitalize the downtown area. The property’s original assessed value (before rehabilitation) continues to (or possibly begins to) provide tax revenue to the municipality. Upon expiration of the term of the RSA 79-E, the property is reassessed and taxed at full market rate. Covenants provide assurance that the property will continue to be maintained.
For the Municipality: it incentivizes investment in buildings that otherwise would not attract development, and eliminates blighted buildings. Occasionally, it allows for the redevelopment of tax-exempt properties, thereby returning them to the tax rolls. Upon expiration of the 79-E, the reassessed value of the rehabilitated property is transferred to the tax rolls.
Where are the current 79E projects in Rochester?
- 1 Wakefield Street
- 2-6 North Main Street
- 10 South Main Street
- 10-14 North Main Street
- 22 South Main Street
- 28 North Main Street
- 45-55 North Main Street
- 73-77 North Main Street
- 124 North Main Street
Click here for a map of Rochester's RSA 79-E district.
Where can I find more information?
- RSA 79-E Fact Sheet
- RSA 79-E Flow Chart
- Chapter 79-E COMMUNITY REVITALIZATION TAX RELIEF INCENTIVE (state.nh.us)
What is the status of current RSA 79-E projects?