This bill proposes a significant overhaul of the funding structure for education in the state by replacing the statewide education property tax (SWEPT) with a local revenue contribution from political subdivisions, effective for the tax year beginning 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 facilitate this transition.

The bill also includes several repeals, notably eliminating the SWEPT and the Low and Moderate Homeowners Property Tax Relief program. Specifically, it repeals RSA 76:3, which mandated the education tax rate to generate $363 million, and RSA 76:8, related to the commissioner's warrant. The new legal language replaces the SWEPT Grant with a local contribution of $334,875,580, leading to a total local revenue decrease of $28,641,257 for FY 2026. While the state adequacy grant remains unchanged at $716,948,319, the overall final state grant will decrease from $1,080,465,155 to $716,948,319 due to the elimination of the SWEPT Grant. The repeal of the Low and Moderate Homeowners’ Property Tax Relief is expected to reduce state expenditures from the education trust fund, with fiscal effects beginning in FY 2027 and no anticipated increase in administrative costs for state departments.

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