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 a portion 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, rather than being paid to the municipalities 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, replacing the previous requirement to generate a specific revenue amount.

Furthermore, the bill repeals RSA 198:41, I(b), which pertains to the determination of education grants, thereby eliminating the concept of "excess SWEPT" that allowed municipalities to keep any surplus revenue beyond their calculated education costs. The fiscal impact of this legislation is significant, with an estimated increase in state revenue of approximately $1.26 billion annually, while local school district revenue would decrease by about $28.6 million due to the removal of excess SWEPT retention. Overall, the bill aims to centralize education funding and ensure that all property tax revenue is directed towards the education trust fund.

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