This bill amends the procedure for overriding local tax caps by requiring a supermajority vote of the legislative body. Specifically, it repeals and reenacts RSA 32:5-b, III to stipulate that when a proposed appropriation exceeds the local tax cap, voting must occur by ballot, unless the legislative body uses an official ballot form of meeting or operates under a specific charter. A 3/5 majority or a supermajority, as defined by the charter, is necessary for the appropriation to be approved. Additionally, if the operating budget exceeds the tax cap and does not receive the required majority, the budget will be reduced to comply with the cap.

The bill also includes provisions for school districts regarding the placement of the warrant article for the SAU budget and clarifies that the new rules will apply to local tax caps adopted before the bill's effective date without requiring local amendments. The act is set to take effect 60 days after its passage, with an approval date of July 15, 2025, and an effective date of September 13, 2025.