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 operates under specific charter provisions. A 3/5 majority or a supermajority, as defined by the charter, is necessary for the appropriation to be approved. Additionally, only affirmative or negative votes will be counted in this calculation. If the operating budget does not receive the required majority, it will be reduced to comply with the tax cap.

The bill also includes provisions for school districts, requiring them to place the warrant article for the SAU budget at the beginning of their warrant. It clarifies that the new rules will apply to local tax caps established before the bill's effective date without necessitating local amendments. The act is set to take effect 60 days after passage, on September 13, 2025.