Excavation (Gravel) Tax
Frequently asked questions in regard to Excavation (Gravel) Tax.
What is the Excavation Tax?
Excavation Tax is a tax assessed on the excavation of earth materials, such as gravel, sand, construction aggregate, rock, sand and soil, within the state of New Hampshire.
How is the Excavation Tax calculated?
The tax is assessed at a rate of $0.02 per cubic yard of earth excavated.
I would like to excavate from land that I own. What steps do I need to take to get an excavation (gravel) permit?
Your municipality is responsible for permitting and administering excavation operations in the state of New Hampshire under RSA 155-E. The NH Department of Environmental Services (DES) or other approvals and permits may be required in certain circumstances. An Intent to Excavate form (PA-38) must be submitted to the municipality and approved before excavating begins. You can find Form PA-38 on our Forms and Instructions page.
Who is responsible for paying the Excavation Tax?
The “owner” as defined in RSA 72-B:2 VIII is responsible for paying the Excavation Tax.
Are there any exemptions to the Excavation Tax?
Yes, there are several exemptions, including: Excavation of earth that is put back on the same parcel or a contiguous parcel in common ownership within the same tax year, excavation used exclusively for agricultural or forest management purposes, and excavation that does not exceed 1,000 cubic yards within any tax year.
What forms are required for the Excavation Tax?
The forms PA-38, Intent to Excavate, and PA-39, Report of Excavated Material, are required and can be found on our Current Year Forms and Instructions page.
Can I Excavate on Current Use Land?
Any excavating, grading or digging is prohibited on current use land.
I filed an intent to excavate but have not heard back from the municipality.
Municipal assessing officials have 30 days to either sign a properly filed intent to excavate form or inform you of the reason why the conditions for approving the intent to excavate have not been met.
I need a copy of the report of excavated materials. Where can I find one?
If you have a signed intent from your municipality, a report of excavated material form was sent to you along with the excavation certificate. If you cannot find the form, or need a new copy, please contact the Municipal and Property Division at (603)230-5950 or by email to gravel@dra.nh.gov
When is the Excavation Tax due?
The Report of Excavated Material shall be filed no later than 30 days following: (1) The completion of the excavating if an excavation ceases operation prior to March 31st; or (2) The sale of the property.
The report of excavated material form pertaining to excavating still in progress through March 31st of any year shall be filed no later than the following April 15th for all earth excavated during the tax year up to and including March 31st.
In the event that no earth was excavated the owner shall file Report of Excavated Material so stating.
Where do I file the Excavation Tax?
The original signed Report of Excavated Material shall be filed with the municipal assessing officials in the town, city, or unincorporated place where the excavation took place.
A copy of the signed original report shall be filed with the Department by mail:
NH Department of Revenue Administration
Municipal and Property Division
PO Box 487
Concord, NH 03302-0478
or by email:
Who do I contact for with questions?
You can contact the Department at (603) 230-5950, send an email to gravel@dra.nh.gov, or visit the Excavation (Gravel) Tax page on this site. Form instructions are also available to assist you and are located on our Current Year Forms and Instructions page under the Timber and Gravel Taxes heading.