This bill mandates that municipalities remit any excess statewide education property tax (SWEPT) to the state for deposit into the education trust fund. New sections are added to RSA 198, specifically sections 198:47-a and 198:47-b, which outline the process for municipalities to report and remit excess SWEPT by March 15 of the tax year in which the excess occurs. The bill specifies that the excess tax collected will be paid to the state treasurer, and any funds remaining after the excess tax payment will be available for unrestricted use by the municipality. Additionally, amendments to RSA 198:41 and RSA 76:8 clarify the treatment of excess SWEPT in the calculation of education grants and the responsibilities of municipalities regarding the assessment and payment of these taxes.

The bill is set to take effect on July 1, 2025, with the first remittance of excess SWEPT due by March 15, 2027. It is projected to decrease adequate education grants by approximately $28.6 million per year starting in FY 2027, as municipalities will no longer retain excess SWEPT locally. The Department of Revenue Administration anticipates a one-time implementation cost of $300,000 in FY 2026 to facilitate the necessary electronic filing and payment systems. Overall, the bill aims to streamline the handling of excess education property tax funds and ensure they are directed to the education trust fund for broader educational purposes.

Statutes affected:
Introduced: 198:41, 76:8, 198:39
As Amended by the House: 198:41, 76:8, 198:39