What is a “split roll” property tax system?

A “split roll” property tax system is a method of collecting property taxes that involves separating residential and commercial property tax rates. In a split roll system, commercial properties are taxed at higher rates than residential ones, with the difference in rate often meant to offset the burden of taxes on low-income households and renters. In New Hampshire, a split roll property tax system is used to fund public schools. Under this system, residential properties are taxed at a substantially lower rate than commercial ones. This gives residential property owners a large tax break, making it more affordable for them to own a home in the state. Commercial properties in New Hampshire are subject to a statewide assessment rate. This rate is based on a combination of the property’s assessed value and the local tax rate. As a result, businesses in the state often pay more in property taxes than residential property owners. The use of a split roll system in New Hampshire is beneficial for the state. It ensures that businesses are paying their fair share of property taxes and helps to lessen the burden of taxes on low-income households and renters. However, it can also cause businesses to become more reluctant to expand in the state, which can have negative impacts on the local economy.

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What is a “split roll” property tax system?

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