Not All Property Improvements Eligible for Exemption for Persons with Disabilities

Appeal of Kat Paw Acres Trust
Appeal of Kat Paw Acres Trust
No. 2007-215
Friday, December 7, 2007

The Town of Wentworth denied exemptions for property improvements including a mudroom, hallway to an in-law apartment, the in-law apartment itself and related plumbing pursuant to RSA 72:37-a, exemption for improvements to assist persons with disabilities. The statute provides that a person with a disability is a person “who by reason of a physical defect or infirmity permanently requires the use of special aids to enable him to propel himself.” The town argued that only those improvements that assist persons with a disability on a permanent basis to propel themselves in their homes are eligible for exemption.

The Court affirmed the town’s denial, holding that RSA 72:27-a does not exempt all improvements that may assist, or make more comfortable, persons who have a mobility disability. The fact that the statute includes the word “propel” to define a “person with a disability” led the Court to conclude that only improvements that assist a person with a disability with propulsion are exempt from taxation. Since the mudroom, hallway, in-law apartment and related plumbing were found not to assist with propulsion, those improvements were not exempt from taxation.