amending the excavation tax rate.

HB 1144-FN - AS INTRODUCED

2026 SESSION
26-2338
07/05

HOUSE BILL
1144-FN

AN ACT
amending the
excavation tax rate.

SPONSORS: Rep. Schamberg, Merr. 6

COMMITTEE: Ways and Means

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ANALYSIS

This bill raises the excavation tax rate.

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Explanation: Matter added to current law appears in
bold italics.
Matter removed from current law appears [
in brackets and struckthrough.
]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
26-2338
07/05

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty-Six

AN ACT
amending the
excavation tax rate.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Taxation; Excavation Tax; Excavation Tax and Taxation of Excavation Area. Amend the introductory paragraph of RSA 72-B:1, I to read as follows:
I. Earth, as defined in RSA 155-E:1, I, shall be exempt from taxation as real property under RSA 72:6 and RSA 72:13. An excavation tax shall be assessed upon the excavation of earth against an owner as defined in RSA 72-B:2, VIII. Such tax shall be assessed at the rate of [
$.02
]
$0.04
per cubic yard of earth excavated. The following are exempt from the excavation tax:

2 Effective Date. This act shall take effect July 1, 2027.

LBA
26-2338
10/22/25

HB 1144-FN- FISCAL NOTE
AS INTRODUCED

AN ACT
amending the
excavation tax rate.

FISCAL IMPACT:

Estimated Political Subdivision Impact

FY 2026
FY 2027
FY 2028
FY 2029

County Revenue
$0
$0
$0
$0

County Expenditures
$0
$0
$0
$0

Local Revenue
No Impact Until FY 2030

Local Expenditures
$0
$0
$0
$0

METHODOLOGY:
This bill doubles the excavation tax rate from $0.02 to $0.04 per cubic yard of earth excavated. As the bill does not change the tax year and takes effect FY 2028, this bill will not have a fiscal impact until FY 2030. The excavation tax is collected locally, therefore any fiscal impact would be at the local level.

The Department of Revenue Administration is not able to determine the exact impact of this bill as it cannot predict the volume of material that will be excavated each year. Using ongoing excavations and excavation volume reports, the Department is able to provide the impact this bill would have had on tax year 2024. In tax year 2024, there were 12.1 million cubic yards of taxable earth excavated for all municipalities statewide. At a rate of $0.02 per cubic yard, under current law municipalities collected about $242,000 in excavation tax. If the tax rate had been doubled, municipalities would have collected an estimated additional $242,000 in tax year 2024, statewide.

AGENCIES CONTACTED:
Department of Revenue Administration