CONCORD – A move to create a new property-tax break for farmers ran into criticism in a Senate hearing yesterday.

The House passed the bill easily, with a two-thirds majority in February, despite concerns by the New Hampshire Municipal Association.

In a Senate Public and Municipal Committee hearing, NHMA ran through a list of problems it sees with the bill, HB 1442. The committee plans to continue the hearing later this month.

The bill would allow voters in a town to exempt the land beneath farm buildings from being assessed a view factor, commonly called the view tax, and would instead tax it under the current use program. Farm buildings, such as barns and sheds, would be taxed at their replacement value, not their fair market value.

State law now says that land under and around buildings cannot be put in current use, which can greatly reduce taxes on land of 10 acres or more.

Assessors say they have no choice under existing law but to apply view factors to properties that have buildings on them.

As the value of land in the northern rural parts of the state climbs in response to growth pressures in the south, view factors are becoming an increasing burden on farmers, Tom Thomson of Orford said. Higher taxes have prompted some farmers to dismantle outbuildings, including barns.

"We are going to lose our tourism and recreation visitors . . . and the 'For Sale' signs will be going up," he said. "This bill can prevent that from happening."

However. Judy Silva of NHMA said the bill has a list of problems. Parts of it conflict with the current-use program law, it doesn't clearly define a farm and the use of buildings isn't clearly limited and could result in a town having to tax a farm under three programs, she said.

"A number of changes have to be made before this could begin to be workable," Silva said.

Kathryn Temchack, director of real estate appraisal for the city of Concord, also spoke against the bill, saying it will be expensive for towns and cities to administer.

Tom Chrisenton of Lyndeborough said the bill does not force any town to comply.

"Each town should be able to pick and choose whether they want enter this program," he said.

Rep. Robert Theberge, D-Berlin, chairman of the House Municipal and County Government Committee, urged senators to support the bill "if you believe in preservation, if you believe in open space and if you believe in treating farmers fairly and equitably."