This bill establishes a local tax cap for school districts, which will be presented to voters during the state general elections in November 2026 and 2028. It requires every town and ward in a city to conduct a vote on this tax cap, which aims to limit property tax growth and set a fixed cap on central office administrative budgets for school districts. The question will automatically appear on the ballot without needing a warrant article or separate local legislative approval. The bill also specifies that central office administrative expenses cannot exceed 6% of total school district appropriations, excluding bonded capital costs. It removes specific references to municipalities and school districts from current law, replacing them with a standardized question format to enhance clarity.

Additionally, the bill allows legislative bodies to exceed the established caps under certain conditions, requiring a 3/5 majority or supermajority vote for approval in districts with annual meetings. For those without annual meetings, budgets must not exceed the cap unless a valid override vote is obtained. The bill mandates compliance documentation to the Department of Revenue Administration and stipulates that if a budget exceeds the cap without an override, it must be reduced. The caps will expire on January 1, 2032, but prior appropriations will remain valid. Taxpayers are granted the right to enforce compliance in superior court, and the Department of Revenue Administration is given rulemaking authority. The bill also repeals RSA 32:5-i, which previously governed the school district local tax cap and school administrative fixed cap.

Statutes affected:
As Amended by the Senate: 21-J:13
Version adopted by both bodies: 21-J:13, 32:5-i
CHAPTERED FINAL VERSION: 21-J:13, 32:5-i