The bill, known as the "Property Tax Relief Act of 2023," aims to alleviate the local property tax burden by restoring the state's contribution to the retirement liabilities of teachers, firefighters, and police officers within the state retirement system. The bill modifies RSA 100-A:16, II(b) and (c) to change the employer contribution rates for benefits under the retirement system for group II members (firefighters and police officers) and group I members (teachers). Starting in the state fiscal year 2024, employers other than the state are required to pay 92.5 percent of the total contributions, while the state will cover the remaining 7.5 percent. For group II members and teacher members employed by the state, the state will pay both the normal and accrued liability contributions.

The fiscal impact of the bill indicates that there will be no change in state appropriations or revenue, but there will be an increase in state expenditures and a corresponding decrease in political subdivision expenditures starting in FY 2024. The New Hampshire Retirement System (NHRS) notes that the bill does not affect the unfunded actuarial accrued liability (UAAL) or funded ratio, as it only changes the funding source of employer contributions, not the total amount due. The expected increase in state expenditures and decrease in political subdivision expenditures is estimated to be $26.49 million in FY 2024, $27.13 million in FY 2025, and $27.78 million in FY 2026. The act is set to take effect on July 1, 2023.