Owning acreage in Sunapee and wondering what it really costs to hold land in Current Use, or what happens when you build or sell? You are not alone. The rules can be simple once you know where to look, and a little planning can save you real money. This quick guide explains hold costs, how the 10 percent Land Use Change Tax works, and smart exit options tailored to Sunapee. Let’s dive in.
Current Use in Sunapee, in plain English
Current Use is a statewide program that lets you pay taxes on the land’s open‑space use value instead of full market value. It usually applies to 10 or more contiguous acres of qualifying land, and the classification stays with the land until the use changes. You apply with the town, and a contingent lien is recorded. See the statute for details in RSA 79‑A.
Sunapee posts its assessing contacts and FAQs online, including the town’s listed 2024 tax rate of $10.01 per $1,000 and an assessment ratio of 87.4 percent. The town also notes that building on Current Use land triggers a 10 percent penalty on today’s fair market value for the portion removed. Review the latest info on the Town of Sunapee assessing page.
Your holding costs while in Current Use
Annual property taxes on enrolled acres
Your enrolled acres are taxed on a per‑acre use value set by the Current Use Board, not on market value. Statewide examples show typical ranges by forest type and stewardship. Published summaries indicate hardwood with stewardship can be about $28–$43 per acre, while white pine with stewardship can be about $66–$99 per acre. These are context only, and your parcel’s numbers come from the official schedule and town records. For background on ranges, see this overview from New Hampshire Business Review (per‑acre value ranges).
A quick example using Sunapee’s listed 2024 rate: 50 acres assessed at $40 per acre equals $2,000 of assessed value, which is about $20 in annual tax. Always confirm the current rate and your exact per‑acre category with the assessor.
Timber harvesting and yield tax
If you cut timber, New Hampshire taxes the harvest at 10 percent of stumpage value. You must file an Intent to Cut and a Report of Wood Cut, and there are penalties for skipping the process. For a clear guide, start with UNH Extension’s summary of New Hampshire timber harvesting laws.
Other carrying costs to expect
You may see small recording fees tied to the original Current Use lien and any later releases. If you use a forest stewardship plan to qualify for a lower per‑acre value, budget for consulting forester fees and periodic updates. If you take the 20 percent recreation discount, your land must stay open for specified recreation, which can affect maintenance and insurance. If you plan to subdivide or build, add survey, engineering, and legal costs to your pro forma.
When the Land Use Change Tax applies
The Land Use Change Tax, or LUCT, is a one‑time tax equal to 10 percent of the market value of the land that changes to a non‑qualifying use on the change date. The rest of your acreage can remain in Current Use if it still qualifies. See the rules in RSA 79‑A.
Common triggers include building a house, driveway, or utilities that alter the land, or reducing parcel size below the qualifying minimum. Selling the property alone does not trigger LUCT if the land continues to qualify. Towns have up to 18 months after notice or discovery to mail the bill, payment is due in 30 days, and interest accrues at 18 percent per year if unpaid.
Practical Sunapee scenarios
- Building on a portion: you typically pay LUCT on only the portion removed for the homesite, driveway, and any changed area. The town determines that portion’s market value on the change date.
- Subdividing: if new lots remain large enough and otherwise qualify, they can stay in Current Use. If a lot falls below the minimum or roads and utilities are built under an approved plan, LUCT can apply to affected areas.
- Selling: the Current Use status runs with the land. The buyer who later develops pays LUCT when the change occurs.
Smart exit routes and how to plan
Partial withdrawal to build
Sketch the exact acreage you plan to remove for the building site, driveway, and yard. Notify the assessing office. The town will use a Notice of Change in Current Use Assessment to process the change. You can review the form here: CU‑18.
Subdivide while preserving Current Use
You may be able to create building lots and keep the balance in Current Use. Coordinate early with the assessor and planning staff, because roads and utilities built under an approved plan can trigger LUCT for lots served by those improvements.
Sell in Current Use
Selling does not, by itself, remove Current Use or trigger LUCT. Make sure the buyer understands the status and the implications of any near‑term development plans.
Conserve the land with an easement
If you permanently conserve the land and it qualifies under RSA 79‑B, you can reclassify to conservation restriction assessment without paying LUCT on that change. The rules are specific, and you will work with a qualified holder. Read the statute at RSA 79‑B, and consider speaking with a local partner such as Ausbon Sargent Land Preservation Trust.
Sunapee owner checklist
- Call the Sunapee assessing office to confirm your parcel’s per‑acre values, the town’s minimum acreage practice, and how to sketch a proposed take‑out. Use the Town of Sunapee assessing page to get current contacts.
- Draw the proposed area to remove, with acreage and sitework needs. Ask if the town can provide an estimated LUCT for planning.
- If harvesting timber, file an Intent to Cut and budget the 10 percent timber yield tax. Review UNH Extension’s guide for process and timelines.
- If you are considering conservation, contact a land trust early to discuss terms, costs, and feasibility under RSA 79‑B.
- If you plan to develop or subdivide, meet with the planning board and building department to understand how approved plans, roads, and utilities affect LUCT.
Timelines to expect
After you notify the town or the town discovers a use change, state law allows up to 18 months for the LUCT bill to be mailed. You have 30 days to pay or pursue an abatement or appeal within statutory deadlines. For procedural rules and appeals, see the state’s Tax 100‑500 rules.
Final thoughts
Current Use can make holding Sunapee acreage surprisingly affordable, and good exit planning helps you control when and how the 10 percent LUCT shows up. A short strategy call with the assessor, plus the right survey or forestry help, can keep your timeline and budget on track.
If you want a clear plan for buying, selling, or developing acreage around Lake Sunapee, reach out to Andy Clouse. You will get senior‑level guidance, local insight, and a confident path from first step to closing.
FAQs
If I buy land in Sunapee that is in Current Use, do I owe back taxes?
- No; Current Use runs with the land, and LUCT is due only when the use changes to a non‑qualifying use under RSA 79‑A.
How is the Land Use Change Tax calculated if I build a house?
- The LUCT is 10 percent of the market value of the portion removed from Current Use as of the change date, usually the area physically changed for the homesite and improvements.
How much will I pay in annual taxes while in Current Use?
- It depends on your per‑acre category and the town tax rate; statewide summaries show hardwood with stewardship around $28–$43 per acre, but confirm your exact values with Sunapee.
Can I avoid the LUCT by donating a conservation easement?
- Yes, if the easement qualifies for conservation restriction assessment under RSA 79‑B, you can reclassify without paying LUCT on that change.
What paperwork do I need when removing land from Current Use or harvesting timber?
- For a change in use, towns use the CU‑18; for timber harvesting, file an Intent to Cut and follow UNH Extension guidance on the process.
