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, which now stipulates that when a proposed appropriation would exceed the local tax cap, the voting must occur by ballot. The bill specifies that a 3/5 majority or a supermajority, as defined by local charters, is necessary for the appropriation to be approved. Additionally, it clarifies that only affirmative or negative votes will be counted in this calculation. 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.

Furthermore, the bill mandates that school districts place the warrant article for the School Administrative Unit (SAU) budget at the beginning of their warrant and outlines how to handle budget appropriations when the outcome of the SAU budget vote is pending. The provisions of this act will apply to local tax caps adopted before its effective date, which is set to be 60 days after passage, and it does not require local amendments or re-adoption by towns or districts.