NH HB1655: New Annual Fee on Waterfront Business Property

Most New Hampshire property owners and managers haven't heard of HB1655, the bill establishing a funding source for maintaining state-owned dams. But buried in that legislation is a provision that will create a new annual monetary obligation for any small business owning waterfront real estate near a state dam—starting in 2026.

What the Provision Does

Under Section 1 of RSA 77:22(II), municipalities must annually assess a fee on qualifying waterfront property:

• $100 per year for property with direct waterfront access
• $50 per year for property with deeded water access only
• An optional $5 collection fee municipalities may add

This is not a one-time charge. It recurs annually and is enforceable like other property tax obligations. If the fee goes unpaid, the state can impose 8% annual interest and place a tax lien on the property—the same enforcement mechanism used for property taxes.

Who Is Affected

The fee applies to small businesses owning real estate that meets two criteria:

1. The property has waterfront or deeded water access
2. The property is located near a state-owned dam

This includes marinas, boat launches, waterfront restaurants, lodges, rental properties, and other commercial operations. Residential property owners and larger commercial entities may be treated differently under the statute, but any small business in the affected zone should verify its status with its municipality.

Timeline and Implementation

The provision becomes effective July 1, 2026. However, the Department of Revenue Administration (DRA) estimates that actual collection will not begin until spring 2028—giving municipalities time to identify qualifying properties and establish assessment procedures.

Property owners should not assume they have until 2028 to prepare. Municipalities may begin notifying affected owners well before collection starts, and the fee will likely be retroactive to the effective date once billing begins.

What This Means for Your Business

If your small business owns waterfront property near a state dam, you should:

• Contact your municipal assessor's office now to confirm whether your property qualifies
• Budget for $100–$155 in annual recurring costs (depending on access type and whether your municipality adds the collection fee)
• Treat this as a property-level obligation in your financial planning, not a discretionary expense—non-payment carries the same consequences as unpaid property taxes
• Review your property deed and municipal records to understand whether your access classification will trigger the $100 or $50 tier

For businesses operating on thin margins or managing multiple waterfront properties, this new fee represents a material change in operating costs. Early awareness allows you to factor it into budgets and pricing before bills arrive.

Source: HB1655, Section 1, RSA 77:22(II), page 2; New Hampshire Department of Revenue Administration guidance on implementation timeline.