The following is from the Conway Daily Sun.
Concord—January 4, 2026—A new N.H. House bill proposes that luxury second homes be taxed an additional “assessment” to fund housing development programs. Under the proposal, homes assessed at more than $1 million and not occupied as a primary residence for at least 183 days per year would face an additional state-level charge. The assessment would be set at $2.50 for every $500 of value above $1 million.
The $1 million threshold would begin adjusting yearly for inflation starting Jan. 1, 2028. Property owners could avoid the charge by filing a homestead declaration with the Department of Revenue Administration.
The bill, HB 1786-FN is titled “Relative to creating a state assessment on non-homestead luxury second homes to fund statewide housing development programs and address housing shortages and making appropriations therefore.” If approved, the legislation would take effect Jan. 1, 2027.
The New Hampshire Department of Revenue estimates it could bring the state over $31 million annually based on 2024 property data and second-home ownership rates.
A Sun analysis found the average home worth over $1 million in New Hampshire is worth $2 million, and the owner of a second home worth $2 million would pay about $5,000 more in taxes if the bill passes. About 6,000 N.H. homes are worth over $1 million.
HB 1786 is sponsored by several state representatives, including David Paige (D-Conway). The prime sponsor is Rep. Chris Muns (D-Hampton). The Sun asked Paige how the state could verify whether someone is living in their own property for less than 183 days, or about half the year.
“Chris’ bill needs some additional work in committee,” Paige said last Friday. “But I support it. And the revenue estimates are good enough to fully refund all the housing programs (Republican Gov.) Kelly Ayotte decimated.”
He said Rhode Island passed similar legislation.
Asked for his opinion, state Sen. Mark McConkey (R-Freedom) said: “I have been a steadfast advocate for housing, especially attainable housing, starter homes and housing that benefits our workforce,” said McConkey in an email on Sunday.
“I am not quick to jump out with my support for HB 1786 … I will be following this one with interest, but there are simply too many details that need to be fleshed out at the moment,” he added.
Money generated by the assessment would go to things such as an Affordable Housing Fund, various state grants, regional planning commissions and offsetting the cost of a tax credit expansion related to housing.
Currently, the bill is in the Housing Committee, of which Paige is a member. It is set to be introduced on Jan. 7, 2026. The bill is due to be out of committee on March 5, 2026.
Other legislative sponsors are Efstathia Booras (D-Nashua), Erica de Vries (D-Hampton), Karen Hegner (D-Hillsborough), Connie Lane (D-Concord), David Preece (D-Manchester), Laurel Stavis (D-Lebanon), and state Sens. Debra Altschiller (D-Stratham) and Rebecca Perkins Kwoka (D-Portsmouth).
The bill would also establish a commission to study how to fully leverage the borrowing power of the state to provide below-market financing for housing development and related infrastructure. The commission should report its fundings by Aug 1, 2027.
Asked to weigh in on the bill, VP of Sales at Badger Peabody Smith Brendan Battenfelder replied in an email Monday. “At this point, the bill is in committee with a lot of other housing-related laws bubbling up at the State House, including attempts to repeal much of the housing legislation passed last year. This bill may have a long road ahead,” said Battenfelder.
“Any funding allocated to support affordable housing would be welcomed in the valley,” he added. “That said we are not going to tax our way to a solution. We need a combination of smart planning, effective zoning change and economic incentives.”
Battenfelder continued: “The economics of affordable housing is going to be some modest state and federal subsidies or incentives but will likely come more from zoning density changes and lowering the development costs associated with building.”
Jim Lyons of Select Real Estate told the Sun, “I am aware that this legislation will be introduced and as a member of the N.H. Association of Realtors Public Policy Committee, I look forward to studying the overall impact of this proposed legislation in our meetings next month.
“At this time, there is too little known to offer an opinion or position.”