This bill mandates that all revenue generated from the statewide education property tax (SWEPT) be deposited into the education trust fund, effectively changing the current practice where municipalities retain some of this revenue. The bill amends RSA 76:8, II to require that the collected amounts be transmitted to the state treasurer for deposit in the education trust fund, replacing the previous requirement for municipalities to use the funds for local school districts. Additionally, the bill sets a new statewide education tax rate of $5.00 per $1,000 of property valuation, starting July 1, 2025, and repeals RSA 198:41, I(b), which pertains to the determination of education grants.

The fiscal impact of this bill is significant, as it is projected to increase state revenue from SWEPT to approximately $1.26 billion annually, compared to the current revenue of about $363 million. However, local school district revenue and state expenditures related to adequate education grants are expected to decrease by approximately $28.6 million per year due to the elimination of municipalities retaining "excess SWEPT." Overall, the bill aims to streamline the funding process for education by centralizing revenue in the education trust fund and establishing a uniform tax rate across the state.

Statutes affected:
Introduced: 76:8, 76:3, 198:41
HB669 text: 76:8, 76:3