For many Free Staters, one of the most important features when looking for a home in New Hampshire is acreage. But the downside of all that peace and space to roam can be a burdensome property tax bill.
In New Hampshire, there is a way to save on taxes if you own more than 10 acres: current use.
What is “current use?”
Current use is a tax strategy that makes it easy for homeowners to keep their acreage undeveloped and taxed at a lower rate. Instead of being taxed at its market value, the land is assessed at a much lower valuation. The caveat is that buildings and other improvements (like driveways or septic systems, for example) are excluded from current use; that is, any houses, outbuildings, septic systems and/or wells must be OUTSIDE of the 10-acre boundary. It is estimated that over half of New Hampshire’s 5.74 million acres are in current use.
What kind of property can be part of current use?
Any undeveloped land that is over 10 acres can enroll in current use. So, if you have farm land, forest land, wetlands or other land unsuitable for agriculture or forest products, you may qualify for current use status. Buildings and other improvements, such as driveways and septic systems, or “curtilage” land that is needed to support surrounding structures, are excluded from current use.
How can I get my land into current use?
Property owners must apply to their town and commit their land to open space conservation. Town officials will assess the land using the criteria established by the state Current Use Board. If land in current use is later developed, or an owner otherwise changes its use to one not qualifying for current use, a land use change tax (currently at 10% of the current market value of the land at its highest and best use) is charged, even if the owner has no plans to develop the land further. If you sell your property and part of it is in current use, the current use status runs with the land.
Will my land be open to the public if it is in current use?
Land in current use can be posted against trespassing. Owners may receive additional tax savings if they keep their land open and free to use all year for hunting, fishing, snowshoeing, hiking, skiing and nature observation. If you’d like the additional discount, you should check with your town about filing for a recreational discount.
If you’re interested in buying a property with significant acreage or have further questions on current use, email Porcupine Real Estate.
If you have 18 acres in current use and you sub divide leaving 5 acres in one parcel and 13 in one parcel what is the that you would have to pay on the 5 acres?
When the subdivision is complete, the town will assess the two new lots separately and there will be a penalty on the new 5 acre parcel. The penalty will be 10% of the new assessment value on that particular parcel.
In a divorce settlement the marital property is in current use with 12 acres of the original homestead and another 2 acres bought in a separate deed years later but added to the original parcel so included for current use tax so with the agreement in the divorce one gets the 12 acres which would stay in current use and the other 2 acres which when they file that deed will have to pay the 10% fee.
How long do they have when deed is transferred to file the deed to be legally recorded especially if they plan to sell it as a building lot?
If we decide to sell property that is currently in current use, do we pay a tax penalty due to the years of savings under the current use program?
If a 17acre parcel is subdivided into 4 lots,.3 of which are contiguous totalling over 12 acres, and not sold,may they still be in current use??
That’s beyond my expertise. You’ll want to check with the local town clerk or tax assessor. I’m not sure if the tax penalty is incurred upon recording of the subdivision or when actual improvements are initiated. If the town doesn’t know, you can contact NH DRA here: https://www.revenue.nh.gov/current-use/index.htm
Can you put up a pole on your property with letting the town know about it
Pole barn
In the town of durham nh can you have property in current use if the land is a combination of 12 acres.? Example say 4 seperate lots with deeds for each lots 1 = 2.5 # 2 3.32 # 3 2.5 4= 3.75 acres totaling close to 12 acres. Trying to add acres to land which is only around 6.4 to put some farm land in to current use. thanks
you can connect with homesteaders in the farming thread of the discord server discord.gg/fsp
can farm equipment be stored on current use land, also can my saw mill be on the land? thanks Bill
try asking these questions in the farming threads of the discord server discord.gg/fsp