What Is Current Use in NH? A Plain-English Guide for Land Buyers and Sellers
What Is Current Use in NH? A Plain-English Guide for Land Buyers and Sellers
Current use is New Hampshire's program under RSA 79-A that taxes qualifying open land on what it can earn growing trees or crops, not on what it would sell for. The catch is the Land Use Change Tax: 10 percent of the full and true value of land that later changes use, such as when it's built on, dug up or shrunk below the size requirement.
What current use is and who qualifies
The legislature declared it in the public interest to preserve open space and keep it from being taxed at values that don't fit open space use. Enrolled land is assessed at a "current use value" based on what the land can earn growing forest or farm crops, not its market value. Buildings are left out of that valuation.
Under the Current Use Board's rules, open space land is farm, forest or unproductive land totaling 10 or more contiguous acres under the same ownership. A certified tree farm, a tract of unimproved wetland, or land growing crops that sell for at least $2,500 a year can qualify at any size. Road or water frontage doesn't disqualify land.
How land is valued, and the recreation adjustment
Each year the board sets per-acre ranges, and the assessor picks a value within them based on things like soil, slope and location. For April 1, 2026 through March 31, 2027, the ranges run from $21 an acre for wetland and unproductive land up to as much as $523 for farm land.
An owner can request a further 20 percent reduction in current use value if the land is open 12 months a year to public recreation, with no entrance fee. You can't prohibit skiing, snowshoeing, fishing, hunting, hiking or nature observation (unless they'd harm a crop or forest activity), though you can post against other uses. If the town removes the adjustment over that kind of posting, it can't return for three years.
The Land Use Change Tax
When enrolled land moves to a non-qualifying use, the town bills the Land Use Change Tax (LUCT): 10 percent of the land's full and true value, figured without the current use discount. It's a tax on the change itself, added to the regular property tax, and it isn't tied to your past savings. Under RSA 79-A:7 the triggers are construction that physically changes the ground (a road, utilities, excavating or grading for buildings), digging out topsoil, gravel or minerals (with some exceptions), and falling below the size requirement.
Usually only the acres that physically changed are taxed, though if what's left drops under the minimum size, the rest can come out too. Subdividing on paper isn't a listed trigger; building the road, or selling off a piece too small to qualify, can be. A plain sale isn't one. The tax becomes a lien on the land, and bills unpaid 30 days after mailing carry 18 percent interest.
Who pays, and how it gets negotiated
Here's the thing: the statute answers part of this. The LUCT is due from the owner at the time of the change in use, so a buyer who starts building after closing is that owner. Where the sale itself causes the change, the Current Use Board's rules treat the purchaser as the owner.
Beyond that, how buyer and seller split the cost is something they can settle in the purchase and sale agreement. A buyer who plans to build can factor the tax into the offer, and a seller who has already started grading or excavating should raise it before closing. Put whatever you agree on in writing and have your attorney review it.
How to tell if a parcel is enrolled
Start with the town assessing office, which keeps the current use property record cards and a map that marks any acres not in current use. Record cards don't always show details like the recreation adjustment, so ask the assessor directly. Then check the county registry of deeds, where the town records the approved Form A-10 as notice of a contingent lien, and ask the assessor whether any change in use has been reported.
What sellers should know
If your land is enrolled, tell your buyer early. There is no buy-out option: land leaves current use only through a change in use. A sale that keeps the land at or above the minimum acreage doesn't trigger the tax, but a sale or split that leaves a piece under it can. Gather your approved Form A-10 and map, and note anything you've done since enrolling, like a new driveway or gravel removal. The town has up to 18 months after it learns of a change to mail the bill, so know what's on record before you list.
If you're buying, ask about the building site early. A house takes its curtilage out of the program - the yard, driveway, well and septic - and what's left must still meet the size requirement. Test pits dug to check whether land is buildable, or to find water, don't disqualify it.
FAQ: NH current use
If I buy land in current use, do I lose the tax break? Not from the purchase alone. If the land still meets the requirements, it stays in current use and the new owner doesn't need to reapply. One exception: if you own enrolled land next door and buy a piece too small to qualify alone, tell the town in writing within 60 days that you plan to apply, then apply by the next April 15.
How do I apply for current use? File Form A-10 with the town's assessing officials by April 15 of the tax year. The town must send its decision by July 1.
Do I have to let the public onto enrolled land? Only if you take the 20 percent recreation adjustment. Without it, the land can be posted against all uses.
This is general information, not tax or legal advice, so check your parcel with your attorney, accountant and town assessor.
Thinking about buying or selling land?
If you own acreage and aren't sure what current use means for your plans, or you're eyeing a piece of land, I'm happy to talk it through - no pressure. I'll help you sort out the questions for the assessor and your attorney.
Cami Navoy - Cami Navoy & Associates, Keller Williams Lakes & Mountains Realty, Meredith, NH
