The proposed bill, known as the "Municipal Property Tax Compensation Act," mandates that the Department of Health and Human Services (DHHS) disburse funds to municipalities equivalent to the lost property tax revenue resulting from the tax-exempt status of nonprofit residential facilities within those municipalities. The bill defines "nonprofit residential facility" as any residential care facility, nursing home, shelter, or similar entity operated by a nonprofit organization that receives funding from the DHHS. The compensation amount will be calculated based on the assessed property value of these facilities and the municipality's current tax rate. The bill also stipulates that no funds shall be disbursed to a nonprofit residential facility until the corresponding compensation to the municipality has been paid.

Additionally, the bill introduces a new section to RSA 126-A, which outlines the responsibilities of the DHHS in calculating and verifying the lost property tax revenue before disbursing funds. It requires nonprofit facilities to submit verification of assessed property values from municipal officials as part of their funding application. The DHHS is also tasked with submitting an annual report detailing the total compensation paid to municipalities and the impact on departmental funding. The act is set to take effect on January 1, 2027, and does not provide new funding or positions, with estimated local expenditures projected to reach approximately $23 million annually.