This bill amends existing laws related to local tax caps and budget procedures, particularly for towns, districts, and school districts. It repeals and reenacts sections of RSA 32:5-b, clarifying that the estimated local taxes for the fiscal year must include the operating budget and any warrant articles with tax impacts, ensuring this total does not exceed the previous year's local taxes raised, adjusted for a tax cap. New language is introduced to define the calculation of tax caps, incorporating adjustments for inflation and changes in population or school attendance. Additionally, the bill specifies the required wording for ballot questions regarding tax cap adoption, depending on whether a fixed dollar amount, percentage, or multiplication factor is used.

Furthermore, the bill establishes a new section, RSA 32:5-e, which sets a budget cap for school districts based on the current per pupil cost multiplied by the average daily membership in residence, with provisions for annual inflation increases. It allows the legislative body of the school district to override the budget cap through established procedures, but any appropriations exceeding the cap must be voted on by ballot. The bill also modifies the language for adopting budget caps, allowing for a fixed percentage for annual inflation increases and changing the inflation index date from January to October 1. It ensures that if a proposed new cap fails, the existing cap remains in effect, and these amendments will apply to current local tax caps and school district budget caps without requiring re-adoption, taking 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