This bill amends the calculation of the local tax cap by incorporating new provisions regarding annual debt service. Specifically, it stipulates that any new annual debt service approved by the legislative body through a bond vote at an annual or special meeting will be included in the tax base once repayment begins. The bill modifies existing language in RSA 32:5-b, I-a and I-b(a) to reflect these changes, ensuring that the amount of any new debt service is accounted for in the tax cap calculations.

Additionally, the bill clarifies that if local taxes raised in the prior year were reduced due to any fund balance carried forward, that reduction will be added back into the amount subject to the tax cap. The adjustments to the tax cap will also consider inflation and changes in population or attendance, thereby providing a more comprehensive framework for local tax calculations. The provisions of this act will apply to local tax caps already in place prior to its effective date, which is set for 60 days after passage.

Statutes affected:
Introduced: 32:5-b
HB1227 text: 32:5-b