This bill proposes an amendment to the excavation tax rate, increasing it from $0.02 to $0.04 per cubic yard of earth excavated. The introductory paragraph of RSA 72-B:1, I is amended to reflect this change, stating that an excavation tax shall be assessed at the new rate against property owners as defined in RSA 72-B:2, VIII. The bill also specifies that certain exemptions from the excavation tax remain unchanged.

The effective date for this new tax rate is set for July 1, 2027, meaning that the fiscal impact of this change will not be felt until FY 2030. The Department of Revenue Administration estimates that if the new rate had been in effect during tax year 2024, municipalities would have collected approximately $242,000 more in excavation taxes, based on the volume of earth excavated statewide. However, the exact impact of the bill cannot be determined due to variability in excavation volumes each year.