Not All Property Improvements Eligible for Exemption for Persons with Disabilities

Appeal of Kat Paw Acres Trust
Appeal of Kat Paw Acres Trust

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.