This bill mandates that municipalities remit any excess statewide education property tax (SWEPT) to the state for deposit into the education trust fund. Specifically, it introduces new sections to RSA 198, requiring municipalities to send any excess SWEPT to the Department of Revenue Administration by March 15 of the tax year in which the excess occurs. The bill clarifies that the excess tax amount does not include income derived from municipal treasurer investments and allows municipalities to use any remaining funds after the excess tax payment for unrestricted purposes. Additionally, it amends existing laws to ensure that the education tax warrant issued by the commissioner of revenue administration excludes the amount remitted back to the department under the new provisions.

The bill is set to take effect on July 1, 2025, and is expected to decrease local revenue by approximately $28.6 million per year, as municipalities will no longer retain excess SWEPT. The Department of Revenue Administration anticipates a one-time implementation cost of $300,000 in FY 2026 to update its systems for electronic filing and payment. Overall, the legislation aims to streamline the handling of excess education property tax and redirect those funds to the state education trust fund, thereby altering the current financial dynamics between municipalities and the state regarding education funding.

Statutes affected:
Introduced: 198:41, 76:8, 198:39