This bill amends existing laws related to local tax caps and budget procedures, specifically for towns, cities, 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. A new formula is introduced for adjusting tax caps based on inflation and changes in population or school attendance, ensuring that the tax cap does not exceed the previous year's local taxes raised, adjusted for these factors. The bill also specifies the wording for ballot questions regarding tax caps, differentiating between fixed dollar amounts, fixed percentages, and multiplication factors. Additionally, it prevents amendments to the tax cap question by the legislative body and establishes a process for local political subdivisions to consider adopting new tax caps.

Furthermore, the bill amends RSA 32:5-e, which sets a budget cap for school districts based on per pupil costs and inflation adjustments, requiring a 3/5 majority vote for the adoption of budget caps. The wording of the ballot question has been modified to include the use of October 1 as the reference date for average daily membership and stipulates that the question shall not be subject to amendment by the legislative body. If a proposed budget cap fails, the existing cap remains in effect. The bill clarifies the process for placing the warrant article for the SAU budget at the beginning of the warrant and outlines how to handle budget appropriations that exceed the budget cap. It applies to existing local tax caps and school district budget caps without requiring re-adoption and 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