The proposed bill, known as the "Property Tax Relief Act of 2025," aims to alleviate the financial burden on municipalities by reinstating the state's contribution to retirement system costs for group I teachers and group II members. Specifically, the bill stipulates that starting in the fiscal year 2026, the state will cover 7.5 percent of the contributions for these retirement system employers, while the employers themselves will be responsible for 92.5 percent. This change is reflected in the amendments to RSA 100-A:16, where the year 2013 is replaced with 2026, and the language is adjusted to clarify the state's financial responsibilities towards both teachers and group II members employed by the state.

The fiscal impact of this legislation is significant, with an estimated increase in state expenditures of $28 million in FY 2026, rising to $29.51 million by FY 2028. Conversely, political subdivisions are expected to see a corresponding decrease in their expenditures by the same amounts. The bill does not provide specific funding for these expenditures, which raises concerns about the financial implications for the state's general fund and the New Hampshire Retirement System. Overall, the bill seeks to shift the financial responsibility from local governments to the state, thereby providing property tax relief while enhancing public education and safety.