Debate over nonprofit tax exemptions centers on a new CCRC pilot and municipal revenue impacts

The committee heard extended testimony on House Bill 12‑95, a proposal to tighten eligibility for nonprofit property‑tax exemptions that currently apply to certain elderly housing and continuing care retirement communities (CCRCs).

Kate Burbage, chair of the Londonderry budget committee, told senators HB 12‑95 was prompted by a local pilot agreement with a new facility known as the Baldwin. Burbage said the Baldwin’s public filings showed little charitable giving prior to the pilot and that Londonderry’s pilot payment—$410,000—covered only part of the estimated municipal tax burden. "On their 990 tax forms for 2023, they made $0 in grant payments or donations," she said, and argued the facility’s business model and compensation levels merited stricter exemption criteria.

Insurance Commissioner DJ Bettencourt and representatives from provider groups, including the New Hampshire Healthcare Association and LeadingAge, warned that the state’s continuing care and nonprofit providers rely on long‑standing tax preferences when making financing decisions and that a broad statutory overhaul could threaten facility viability or push costs to residents. The insurance commissioner noted CCRCs are regulated as insurance‑like entities and that the department has in recent years had to intervene in financially troubled CCRCs.

Catholic Charities and other nonprofit providers said sweeping changes aimed at a single facility risk unintended consequences for nursing homes, assisted‑living providers and other nonprofit operators that cross‑subsidize care for Medicaid residents. Local officials and the Londonderry budget committee said their aim was to address a narrow local problem and suggested targeted statutory changes to tighten charity‑test standards and require greater community benefit demonstration.

Committee members closed the hearing and will consider the competing concerns in subcommittee action.