The bill amends existing laws related to local tax caps and budget preparation, specifically by repealing and reenacting RSA 32:5-b. It clarifies the procedures for adopting a local tax cap and the language used in related warrants. New provisions are introduced to allow adjustments based on inflation and changes in population or school attendance, ensuring that the tax cap accurately reflects these factors. The estimated local taxes raised are capped at the previous year's amount adjusted for the tax cap. Additionally, the bill modifies the phrasing of the voter question regarding tax cap adoption, allowing for various calculation methods, and establishes a new provision that permits local political subdivisions to consider adopting a new tax cap while maintaining the existing one if the new proposal fails.

Furthermore, the bill, HB 374, introduces a budget cap for school districts under RSA 32:5-e, limiting the total amount raised and appropriated for the fiscal year based on the current per pupil cost and average daily membership in residence, adjusted for inflation. The inflation factor can be determined by a fixed percentage or an index published by the U.S. Bureau of Labor Statistics. The legislative body can override the budget cap through a ballot vote requiring a 3/5 majority. The bill also amends RSA 32:5-f, changing the wording of the ballot question and allowing local political subdivisions to consider new budget caps if existing ones fail. The amended provisions will apply to previously adopted caps without requiring re-adoption, and the act will take effect 60 days after passage.

Statutes affected:
Introduced: 32:5-c, 32:5-e, 32:5-f
As Amended by the House: 32:5-c, 32:5-f
As Amended by the Senate: 32:5-c, 32:5-f
Version adopted by both bodies: 32:5-c, 32:5-f
CHAPTERED FINAL VERSION: 32:5-c, 32:5-f