This bill mandates that municipalities must 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 amount does not include income from municipal treasurer investments and allows municipalities to retain any remaining funds after the excess tax payment. Additionally, it amends existing laws to ensure that the education tax warrant issued by the commissioner excludes the amount remitted back to the department under the new provisions.

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. 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 bill aims to streamline the process of handling 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