1. State law (RSA 187-A:25 and 72:23) exempts USNH from the payment of property taxes. USNH shall conduct its affairs in a manner which recognizes and gives full effect to the legislative intent and policy embodied in that statute.
2. The Board recognizes that USNH and its component institutions receive certain municipal services which are funded by property tax revenue. The Board also recognizes that the presence of a USNH institution benefits the community in which it is located in many ways, including financially.
3. USNH and its component institutions shall not pay property taxes, make payments in lieu of property taxes, or make any other payments (whether in the form of money, real or personal property, or the provision of services) based upon USNH property valuation for the purpose of compensating a local government for the provision of a municipal service which is funded by property tax revenue.
4. Notwithstanding the provisions of paragraph 3, above, USNH in its sole discretion may make payments (in the form of money, real or personal property, or the provision of services) to a local government for the purpose of compensating that government for the provision of a municipal service funded by property tax revenue under circumstances in which the following conditions exist:
4.1 The payment will do no more than compensate the local government for the reasonable, actual, direct, or marginal costs incurred by the local government in providing the municipal service in question to USNH; and
4.2 One or more of the following circumstances exist:
4.2.1 USNH historically has made payments to the local government as compensation for the particular service in question; or
4.2.2 Providing the particular service in question to USNH imposes an undue burden on the local government which, but for the presence of USNH, would not exist (e.g., special fire fighting equipment); or
4.2.3 The burden of providing the particular service in question to USNH is grossly disproportionate to the burden of providing that service to the rest of the community; or
4.2.4 USNH or one of its component institutions uses its real property for purposes unrelated to its mission (for example, the commercial sale of goods or services to the general public, where such sales are not merely incidental to the sale of such goods or services to students or employees); and
4.2.5 The payment is either: (i) a one-time payment in an amount less than $10,000, or (ii) authorized by a vote of the Board of Trustees.
5. The provisions of paragraph 4, above, shall not apply to the payment by USNH of valid user fees to a local government for those services which are funded by such fees. Fee rates paid shall not exceed those regularly charged other users for similar services.
6. If an entity unrelated to USNH occupies such land, building or other facility for purposes unrelated to the missions of USNH and its component institutions, the lease or other agreement permitting that occupancy shall include a provision requiring the unrelated entity to pay properly assessed property taxes under the conditions set forth and as provided for in RSA 72:23, I.