This bill seeks to abolish the statewide education property tax and grants authority to local political subdivisions to impose their own real estate taxes starting from the tax year beginning April 1, 2024. It amends RSA 72:6 to allow this change, limiting the state's real estate taxation powers to railroads and utilities, and introduces the term "local property tax contribution" for the tax warrant issued for the 2024 tax year. The bill also repeals various statutes related to the education tax and the low and moderate income homeowners property tax relief program, with the repeals taking effect on different dates. The fiscal note indicates a decrease in state revenue by $363 million annually from FY 2026 due to the repeal of the statewide education property tax, while the impact on local revenues will vary and is indeterminable at this stage.

The Department of Revenue Administration assumes that municipalities will levy local property taxes to replace the $363 million previously generated by the statewide education property tax to fund school district appropriations. The bill also proposes the repeal of the Low and Moderate Income Homeowners Property Tax Relief program, which had a payout of approximately $1.5 million in FY 2023, with the fiscal impact of this repeal beginning in FY 2027. The New Hampshire Municipal Association has called for further analysis to assess the impact of recent court decisions on this legislation. Input on the bill has been sought from the Department of Education, the Department of Revenue Administration, and the New Hampshire Municipal Association.

Statutes affected:
Introduced: 72:6, 198:38, 198:41