Committee Summary for Senate Energy and Natural Resources (05/06/2025)

Bill/Time	Type	Title	Sponsor
HB123 00:05:20.320 - 8:04:06 AM	Public Hearing	(New Title) relative to yield taxes on property enrolled or registered for the purpose of generating carbon offset credits.	Davis, Arnold(R)[B]2024

HB123: Representative Arnold Davis from Milan, New Hampshire Support00:05:20.320 - 8:04:06 AM; Representative Davis introduced House Bill 123, emphasizing its simplicity and its alignment with the existing timber tax under RSA79. He clarified that the bill is not a new tax but an application of the 76-year-old timber tax to include carbon sequestration yields. He argued that the bill addresses the negative impacts of carbon sequestration on New Hampshire's timber industry and municipalities, ensuring that all timber yields, whether from cutting or sequestration, are assessed equally. Davis also mentioned the bipartisan support the bill received in the House and highlighted the potential economic impacts on local property taxes and the timber industry due to the growth of the carbon market.
HB123: David Rosher from Senate District 1, representing Coos County, the top third of Grafton County, and almost every unincorporated place in New Hampshire Support00:11:47.920 - 8:10:33 AM; Senator Rosher supported House Bill 123, providing background on the historical context of the timber tax and its purpose in encouraging proper forest management. He expressed concerns about the carbon credit industry's impact on local economies and property taxes, particularly in the North Country. He argued that the bill would close a loophole and help mitigate rising property taxes by ensuring towns receive necessary revenue from timber tax.
HB123: Representative McGuire, Chairman of Granite State Taxpayers Support00:17:28.160 - 8:16:14 AM; Representative McGuire, speaking as the chairman of Granite State Taxpayers, supported House Bill 123 for both historic and practical reasons. He explained how the timber tax was implemented to prevent early and clear cutting, promoting sustainable forest management. He argued that the bill would balance the scales by taxing carbon sequestration similarly to timber cutting, thereby encouraging productivity in New Hampshire and preventing the state from favoring carbon credits over forest use.
HB123: Commissioner Raymond Gorman from District 3, representing from Pittsburg to Twin Mountain Support00:23:50.880 - 8:22:36 AM; Commissioner Gorman emphasized the importance of the timber tax for Coos County, especially in unincorporated places. He highlighted how these funds support local services such as dispatch centers and ambulances. He expressed concerns about the impact of carbon credit forestry on local economies and the traditional use of forests, including wildlife management and recreation.
HB123: County Commissioner Robert Tibel from District 1, representing Berlin and Milan Support00:29:01.760 - 8:27:47 AM; Commissioner Tibel supported House Bill 123, focusing on its importance for the timber industry in Berlin, which has faced operational challenges due to limited timber availability. He stressed the need to protect local economies and maintain the traditional forest management practices that are crucial for the region.
HB123: Mark Brady, Coos County Administrator Support00:37:45.680 - 8:36:31 AM; Mark Brady supported the bill, highlighting the county's agnostic stance on carbon credits but emphasizing the need to close the loophole that favors carbon sequestration over timber tax. He discussed the economic implications for Coos County's budget and services, and stressed the importance of property owners paying their fair share. He also mentioned ongoing discussions about the state's management of forest resources and the need for a comprehensive approach.
HB123: Joe Kenny, Wakefield, New Hampshire Support00:44:42.319 - 8:43:28 AM; Joe Kenny, a resident of Wakefield, New Hampshire, and a former executive counselor, supports House Bill 123. He highlighted the need for a yield tax on properties enrolled in carbon offset programs, noting that this tax would be a new application of an existing timber tax. He emphasized the impact of carbon offset programs on local revenues and the timber industry, particularly referencing the Connecticut Lakes Headwater forest agreement. He also discussed the necessity of a registry for lands in carbon offset programs and the need for the Department of Revenue Administration (DRA) to study the effects on timber tax revenues. Additionally, he expressed concerns about the unchecked nature of the carbon credit industry and its potential threat to New Hampshire's forestry and logging industry.
HB123: Jennifer Ramsey, Tax Policy Council, Department of Revenue Administration Information Only00:56:05.200 - 8:54:51 AM; Jennifer Ramsey from the Department of Revenue Administration provided technical feedback on the bill. She discussed the challenges with implementing RSA 795, which allows for taxing carbon credit offset landowners but has never been utilized due to ambiguous language. She pointed out issues with defining when a property is unreasonably deprived of revenue, the maturity of trees for taxation, and the interplay with the current use system. Ramsey also highlighted specific concerns with the existing bill, such as how local assessors would know about property enrollments, defining carbon offset credits, and determining taxable events and valuations.
HB123: Jason Stock, Executive Director, New Hampshire Timberland Owners Association Oppose01:03:37.680 - 9:02:23 AM; Jason Stock, representing the New Hampshire Timberland Owners Association, opposed House Bill 123. He argued that the bill introduces a new tax and potentially a double tax on timber. He expressed concerns about the bill's technical implementation, particularly regarding the taxation of the net value of carbon contracts rather than traditional timber measurements. Stock advocated for a study commission to further evaluate the bill, noting that the industry is already facing challenges with trade and tariffs. He emphasized the importance of property rights and suggested that any taxation should be carefully considered and implemented.
HB123: Brian Gould, Lawyer, Coos County Support01:26:01.000 - 9:24:47 AM; Brian Gould, representing Coos County, supported House Bill 123 from a legal perspective. He argued that the bill aligns with the state's constitutional authority to impose special assessments for forest conservation. He explained that RSA 795 already allows for taxing timber that is not harvested, which could be applied to carbon offset properties. Gould countered DRA's concerns about enforceability, suggesting that property valuation based on income streams is well-established in New Hampshire law. He emphasized the need for the state to protect municipalities from revenue losses due to state policies encouraging carbon sequestration.
HB123: William Aringer, Tax Attorney, Wrath Young and Pignatelli, Contoocook Information Only01:34:04.239 - 9:32:50 AM; William Aringer, representing Aurora Sustainable Lands, testified about the Connecticut Lakes Headwater Forest, which Aurora acquired in November 2022. He emphasized that Aurora is in compliance with the 2003 conservation easement and is committed to being a good neighbor to the towns where the land is located. Aringer clarified that there has been timber harvesting on the property since its enrollment in the California carbon program in 2013, despite a decline in harvesting. He addressed misconceptions about the lack of harvesting and tax implications, stating that income from carbon credit sales is subject to business profits tax and business enterprise tax, potentially leading to double taxation. He criticized HB123 as unadministerable and suggested a study commission to thoroughly examine the issue. Aringer also mentioned Aurora's voluntary commitment to stabilize revenue in the three towns affected by potential timber tax revenue fluctuations.
HB123: Matt Lehey, Public Policy Director, Society for the Protection of New Hampshire Forests Information Only02:00:19.280 - 9:59:05 AM; Matt Lehey acknowledged the financial concerns of local municipalities and county governments due to forest carbon deals. He supported the idea of a study commission to explore solutions but questioned the effectiveness of the current bill, HB123, citing its complexity as noted by the Department of Revenue Administration's analysis.
HB123: Bob Birdie, Licensed Professional Forester, Licensed Surveyor, Selectman in the town of Rumney, New Hampshire Oppose02:01:52.560 - 10:00:38 AM; Bob Birdie, with extensive experience in forestry and surveying, opposed HB123. He highlighted his vast experience managing timberland across New Hampshire, particularly in Grafton County. Birdie represented Greenacre Woodlands, a landowner since 1946, which owns over 17,000 acres and has paid significant yield taxes. He noted that their timber management plans would reduce harvesting starting in 2024. Birdie criticized the carbon credit program, stating it's not beneficial and does not impact the forest industry negatively as claimed. He emphasized that the real issues affecting the industry are labor and natural resource availability, not carbon credits. He also mentioned the minimal impact of yield taxes on the town of Rumney's budget and urged the committee to educate themselves on carbon credits, arguing it is not an income tax but a yield tax.
HB123: Steve Halley, Milin Lumber Information Only02:11:49.920 - 10:10:35 AM; Steve Halley from Milin Lumber provided information on the impact of reduced fiber availability on their operations. He mentioned that their sawmills, located near the upper Connecticut Valley, experienced a significant reduction in fiber following the Aurora land purchase, leading to production curtailments and reduced work hours. Halley emphasized the economic ripple effect of the timber industry and stated that carbon credits do not have a similar impact. He advocated for carbon credits to be treated like other forest products for a level playing field.
HB123: Jeff Kums, Owner of Chocorua Forest Lands and Osprey Mountain Land Company in Thornton, New Hampshire Oppose02:15:27.000 - 10:14:13 AM; Jeff Kums opposed HB123, stating that his companies depend on their land for logging and firewood production. He entered the carbon credit program in 2019, which he found expensive but received some income in the current year. Kums argued that taxing carbon credits alongside timber taxes would result in double taxation. He supported the idea of a study commission to better understand the different types of carbon credit programs and their impacts on local businesses and communities.
HB123: Charlie Lec, Licensed Forester, Resident of Antrim, New Hampshire Support02:23:02.479 - 10:21:48 AM; Charlie Lec supported HB123, stating his involvement stemmed from efforts to address revenue losses in the north country due to carbon offset credit sales. He clarified that the bill, if amended, would not introduce a new tax or double taxation, as it would operate similarly to the existing timber tax system. Lec emphasized the need for an amendment that addresses concerns raised by the Department of Revenue Administration (DRA) and encouraged the committee to hold another hearing on this amendment rather than forming a study commission. He shared anecdotes to illustrate the need for the bill to close loopholes and level the playing field for landowners.
HB123: Brody Dea, New Hampshire Municipal Association Support02:30:43.359 - 10:29:29 AM; Brody Dea, representing the New Hampshire Municipal Association, supported HB123. He emphasized the potential revenue loss for municipalities if carbon credits are not taxed similarly to timber. Dea highlighted the unworkability of RSA 79:5 for assessing general property tax on standing timber and suggested its repeal to prevent concerns of double taxation. He also provided historical context on timber taxation in New Hampshire and stressed the importance of treating carbon credits like other timber yields to support rural municipalities.
HB123: Scott Reineer, Resident of Errol, New Hampshire, Licensed Forester, Regional Manager for Wagner Forest Management Oppose02:37:22.960 - 10:36:08 AM; Scott Reineer opposed HB123, arguing it constitutes an income tax and places an unfair burden on municipal assessing services. He listed various revenue streams for landowners that are not taxed similarly under the bill, such as maple sugaring and cell tower leases. As a selectman in Errol, he expressed concerns about the impact on towns struggling to retain assessing services. Reineer supported a two-year study commission to better understand and address the taxation of carbon agreements without restricting landowners' rights.
HB123: Dan Hudnut, Resident of Lyme, New Hampshire, President of Wagner Forest Management Oppose02:39:50.160 - 10:38:36 AM; Dan Hudnut opposed HB123, noting that Wagner Forest Management pays significant yield taxes and supports the forest products industry. He highlighted the loss of markets and contractor capacity, particularly following the closure of a mill in Jay, Maine. Hudnut argued that the bill was developed in response to a specific project without understanding the broader carbon credit market. He questioned the bill's alignment with the state's constitutional amendment, which specifies that taxation should encourage conservation. Hudnut also criticized the potential double taxation on landowners who continue to harvest timber while participating in carbon programs and supported a memorandum of understanding to address municipal concerns.
HB123: Thomas Han, Consulting Forester, New Hampshire Oppose02:44:39.920 - 10:43:25 AM; Thomas Han, a consulting forester since 1985, manages 50,000 acres of forest land in New Hampshire and is involved with carbon offset projects. He opposes HB123 as passed by the House, arguing that the definition of a timber yield tax does not apply to carbon offset credits. He emphasizes that forest management and timber harvesting are compatible with carbon offset programs, and the impact on municipal yield tax revenue would be minimal. He also highlights that the landowners involved in the New Hampshire carbon registry are mostly long-term New Hampshire landowners, not out-of-state corporations. Han points out that the average financial return from timber management in New Hampshire is about 1%, which makes other land uses like carbon credits more appealing. He supports the idea of a study commission to further explore these complex issues.
HB123: Meredith Hatfield, The Nature Conservancy Oppose02:49:38.080 - 10:48:24 AM; Meredith Hatfield, representing The Nature Conservancy, opposes the House-passed version of HB123. She discusses the Family Forest Carbon Program, which is a 20-year commitment available to New Hampshire landowners and compatible with existing land uses. Hatfield provides data on properties in the forest carbon registry, noting that most are owned by long-term New Hampshire residents and nonprofits focused on conservation. She supports the creation of a study commission to address the raised questions and considers broader issues, particularly the economic challenges in the North Country. Hatfield suggests that a more equitable distribution of revenue could help mitigate the impact of forest carbon initiatives on local communities.
HB123: Mark Raybon, Warehouser, New England Stumpage Manager Oppose02:53:14.560 - 10:52:00 AM; Mark Raybon, from Warehouser and managing New England timberlands, opposes HB123. He manages 24,000 acres in Coos County, sustainably managed under various standards. Raybon argues that HB123 would impose a double tax on forest landowners selling carbon credits, as they already pay timber tax on harvested timber. He discusses Warehouser's carbon project in Maine, emphasizing that it does not reduce the forest's environmental benefits and could even increase timber value. Raybon challenges the bill's assumption that municipalities lose revenue from forest carbon projects, suggesting that these projects could actually benefit local economies.
HB123: Representative Mike Wlette, Colebrook, representing Columbia and Stewartstown Support02:56:26.560 - 10:55:12 AM; Representative Mike Wlette supports HB123, emphasizing that standing timber is part of real estate and subject to property taxes. He references RSA 79:3, which imposes a 10% yield tax on stumpage value at the time of sale. Wlette notes an amendment exempting properties under 500 acres from the carbon yield tax, aimed at protecting small landowners. He argues that opponents have complicated the issue, and the bill is workable according to discussions with the RRA. Wlette cites the town of Pittsburg as having been shorted over $4 million in yield tax over the last decade, urging the committee to support the bill to ensure fair revenue distribution.

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