Current Use Property Taxation in the Conservation of New Hampshire Land

Urban fringe lands used for nonmetropolitan purposes face higher property taxes if they are assessed at fair market value. Therefore the owners of such land (agricultural, forest) are often inclined to sell all or portions of their properties to cover rising tax bills. In order to delay tax induced land conversion, most of the states are using current use (CU) value of land for tax purposes.

The objectives of this essay are to identify the factors that affect the participation and withdrawal of CU designated land from the CU program in New Hampshire. Our findings suggest that increases in land value, property tax rates, close proximity to Manchester and higher property tax savings result in increase in enrollment in the program. Also, the results suggest a lower withdrawal of land from the program in towns with higher property tax savings and higher average land value.