This bill aims to clarify the procedures and language associated with adopting local tax and budget caps in towns and districts. It repeals and reenacts sections RSA 32:5-b, I and II, to specify that the estimated amount of local taxes for the fiscal year must include the operating budget and all warrant articles with a tax impact, certified by the governing body or budget committee. The bill also establishes that the tax cap can be a fixed dollar amount, a fixed percentage, or a multiplication factor based on the previous year's local taxes, with adjustments allowed as specified in the new language.

Additionally, the bill modifies the phrasing of the questions posed to voters regarding the adoption of tax caps. It replaces the previous wording with clearer options depending on whether a fixed dollar amount, fixed percentage, or multiplication factor is used. The bill also introduces a fixed percentage option for the annual increase for inflation in the municipal budget law and specifies the wording for questions related to school district budget caps. Importantly, the amendments will apply retroactively to local tax caps and school district budget caps already in place, without requiring re-adoption by the towns or districts. The act will take effect 60 days after its passage.

Statutes affected:
Introduced: 32:5-c, 32:5-e, 32:5-f