This bill proposes substantial changes to New Hampshire's education property tax system, raising the education property tax rate to $5 per $1,000 of valuation, effective July 1, 2027, from a previous target of $363 million. It introduces a tax credit system that provides 20% credits for the assessed value of primary residences, 10% for individuals without children in public schools, and 10% for seniors over 65. Additionally, the Department of Revenue Administration will now distribute education property taxes directly to municipalities for local school districts, rather than allowing municipalities to retain the funds.

The bill also redefines the "cost of an adequate education," renaming it the "Excellence in Education Grant" and establishing funding amounts of $10,000 per enrolled student, with an additional $4,000 for those qualifying for free or reduced-price meals, and mandates a 2% annual increase in this revenue. It repeals existing statutes related to extraordinary need grants and makes various amendments to align with these changes. The new School and Local Government Property Tax (SWEPT) is projected to generate approximately $1.77 billion in revenue, significantly increasing the current revenue. The Department of Revenue Administration anticipates costs of around $350,000 for implementing the new tax structure, which includes developing necessary forms and updating systems, but can manage this without additional personnel.

Statutes affected:
Introduced: 76:3, 76:8, 193-E:2-
HB1800 text: 76:3, 76:8, 193-E:2-b