This bill proposes substantial revisions to New Hampshire's education property tax system, primarily by increasing 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 allows for credits of 20% of the assessed value of a primary residence, 10% for individuals without children in public schools, and 10% for seniors over 65. Additionally, the Department of Revenue Administration will now be responsible for directly distributing education property taxes to municipalities for local school districts, rather than allowing municipalities to retain these funds.

The bill also redefines the "cost of an adequate education," renaming it to "Excellence in Education Grant" and establishing specific funding amounts per enrolled student, including $10,000 for each student and an additional $4,000 for those qualifying for free or reduced-price meals. It mandates a 2% annual increase in the required revenue amount and repeals existing statutes related to extraordinary need grants. The new tax structure, known as the School and Local Government Property Tax (SWEPT), is projected to generate approximately $1.77 billion in revenue, significantly increasing the estimated revenue from the current $363 million. The Department of Revenue Administration anticipates incurring costs of about $350,000 in fiscal year 2027 to implement the necessary changes, including developing forms and modifying existing systems.

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