New Hampshire ~ Property Tax: Educational Exemption Denied Because Lessor Did Not Operate School

CCH Tax Day Report

For New Hampshire property tax purposes, property owned by a trust was not entitled to an educational use exemption based simply on its rental of part of a building on the property to a for-profit corporation that offered computer classes because the trust did not operate the school. Even if the lessee operated a school qualified for the exemption, it did not own the property. In addition, while the school was owned by a beneficiary of the trust, relevant statutes did not permit an exemption simply because an organization using and occupying the property and the organization that owned the property were jointly owned. Further, the Court found that the Form BTLA A-9 which accommodated the application for an exemption by a principal occupant did not establish that occupancy by a qualifying organization entitled the property to the exemption in the absence of its ownership by a qualifying organization. Accordingly, the property did not qualify for an exemption.

Kadle Properties Revocable Realty Trust v. City of Keene, New Hampshire Supreme Court, No. 2016-0206, March 10, 2017, ¶200-925



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