This bill establishes a tax cap for local school districts by amending RSA 76:8 to limit the authority of school districts to make certain appropriations. Specifically, it introduces new provisions that restrict school district appropriation amounts, excluding facilities acquisition and construction, to not exceed the previous year's appropriation adjusted by the average Consumer Price Index (CPI) for the prior five years until June 30, 2027. After this date, appropriations will be capped at the greater of either the five-year average percent change in Average Daily Membership Revenue (ADMR) or the five-year average appropriation amount. Additionally, any appropriations exceeding these limits will require a two-thirds majority vote from the legislative body of the school district.

The bill also mandates that the commissioner of the Department of Revenue Administration notify school boards of any excess appropriations not in compliance with the new limits, which will be excluded from district taxation calculations. The calculation of the previous five years' average CPI will be based on the All Urban Consumers index for the Northeast Region, specifically excluding medical care services. 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