The bill SB 383-FN proposes amendments to the local tax cap regulations, specifically modifying RSA 32:5-b to incorporate a new formula for calculating the tax cap. This formula will account for inflation, using either the Consumer Price Index (CPI) or the Municipal Cost Index (MCI), and changes in population or attendance for towns, village districts, or school districts. The bill requires that the estimated amount of local taxes to be raised includes the operating budget and all warrant articles with a tax impact, and it must not exceed the previous year's amount, adjusted for any fund balance carried forward and the new formula. For school districts, the bill sets a budget cap based on the current per pupil cost multiplied by the average daily membership in residence (ADMR), adjusted for inflation. The legislative body can override the budget cap with a 3/5 majority vote.

Furthermore, the bill outlines the procedures for a school district to adopt a budget cap, which requires a 3/5 majority vote at an annual or special meeting. The process includes placing the question on the warrant by the school board or petition, holding a public hearing, and specifying the wording of the question. The budget cap, if approved, will take effect in the following fiscal year and can be rescinded through a similar voting process. The bill also contains a contingency clause related to HB 185 of the 2024 legislative session and states that the amendments apply to tax caps adopted before the effective date of this act without the need for local amendment or re-adoption. The act will take effect 60 days after its passage, with an effective date of October 01, 2024.

Statutes affected:
Introduced: 32:5-b
As Amended by the Senate: 32:5-b
As Amended by the House: 32:5-b
Version adopted by both bodies: 32:5-b
CHAPTERED FINAL VERSION: 32:5-b