This bill establishes a tax cap for local school districts by amending RSA 76:8 to limit the appropriation amounts that school districts can authorize. Specifically, until June 30, 2027, appropriations, excluding facilities acquisition and construction, cannot exceed the previous year's amount adjusted by the average Consumer Price Index (CPI) over the last five years. After this date, the cap will be determined by either the five-year average percent change in Average Daily Membership Revenue (ADMR) or the five-year average appropriation, whichever is greater. Additionally, any appropriations exceeding these limits will require a two-thirds majority vote from the legislative body, and emergency appropriations will follow existing provisions.

The bill also includes provisions for the Department of Revenue Administration to notify school boards of any excess appropriations that do not comply with the new limits, which will be excluded from district taxation calculations. The average CPI will be calculated using data from the All Urban Consumers in the Northeast Region, specifically focusing on the "services less medical care services" index. The act is set to take effect on July 1, 2025.

Statutes affected:
Introduced: 76:8, 198:40-a
As Amended by the House: 76:8