The bill amends existing laws concerning local tax caps and budget preparation, specifically by repealing and reenacting RSA 32:5-b. It clarifies the procedures for adopting local tax caps and introduces new provisions that allow for adjustments based on inflation and changes in population or school attendance. The bill also defines key terms such as "base amount," "attendance," and "population" to enhance clarity in the application of the tax cap. Additionally, it modifies the phrasing of the question posed to voters 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 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. It specifies how the annual inflation increase can be determined and outlines the procedures for overriding the budget cap, requiring a supermajority vote for any appropriations exceeding the cap. The bill also amends RSA 32:5-f by changing "January" to "October" regarding the inflation index and allows local political subdivisions to adopt a new budget cap using the methods described. The amended provisions will apply to existing local tax caps and school district budget caps without requiring re-adoption, with the act set to 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