This bill aims to overhaul the funding structure for education by replacing the statewide education property tax (SWEPT) with a local revenue contribution from political subdivisions, effective for the tax year starting April 1, 2025. The local contribution will be defined as the lesser of the state education property tax warrant for that year or the cost of providing an adequate education. The bill amends existing laws to reflect this change, particularly in the calculation of education grants for municipalities, which will now deduct the local contribution instead of the education tax warrant. Additionally, it introduces temporary adjustments to local education tax rates and billing practices for the 2026 tax year to accommodate the new structure. Significant deletions include the repeal of RSA 76:3 and RSA 76:8, which relate to the education tax and the commissioner's warrant, as well as the elimination of the Low and Moderate Homeowners’ Property Tax Relief program, effective January 1, 2027. The bill also inserts a new provision for local contributions, indicating a required contribution amount of Local Contribution (LC) $0 $334,875,580 $334,875,580, while deleting the SWEPT Grant $363,516,836, leading to a projected total reduction in state education trust fund revenue by $363,516,836 and a decrease in local revenue by $28,641,257. The fiscal implications of these changes are significant, with the Department of Revenue Administration noting uncertainties regarding the future impact of the repeal of the L&M Relief program, which had previously provided approximately $1.1 million in relief during FY 2024.

Statutes affected:
Introduced: 198:38, 198:41, 32:b-5, 76:15-a, 76:15-, 76:3