SB 315-FN-A-LOCAL – AS INTRODUCED
2006 SESSION
09/04
SENATE BILL 315-FN-A-LOCAL
AN ACT repealing the statewide enhanced education tax.
SPONSORS: Sen. Fuller Clark, Dist 24; Sen. Burling, Dist 5; Rep. Langley, Rock 18
This bill repeals the statewide enhanced education tax.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
06-2905
09/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT repealing the statewide enhanced education tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Reference Deleted; Cooperative Assessment Districts; Purpose. Amend RSA 21-J:14-h to read as follows:
21-J:14-h Purpose. The general court finds that the encouragement and support of the establishment of multi-jurisdictional assessing districts is in the state’s interest in order to ensure the accuracy and fairness of valuations of real property for the purposes of administration of [the] any statewide [enhanced education tax] property taxes, county property taxes, school district property taxes, municipal property taxes, the distribution of various forms of state aid, and the equalization of property values among jurisdictions. The general court further recognizes that many municipalities do not have sufficient numbers of real estate parcels, sufficient varieties of real property, or sufficient levels of new development to make it practical or economical to engage full-time, trained, and certified assessing professionals. The general court further finds that the state has a vested interest in encouraging and supporting the establishment of cooperative assessing districts which can efficiently and economically provide full-time, trained, and certified assessing professionals to serve the municipalities which elect to create and join said districts.
2 Commissioner’s Warrant. Amend RSA 76:8, III to read as follows:
III. Municipalities are authorized to assess local property taxes necessary to fund school district appropriations not funded by [the statewide enhanced education tax, by] distributions from the education trust fund under RSA 198:39[,] or by other revenue sources.
3 Definitions; State Aid for Education Equality. Amend RSA 198:38, XI to read as follows:
XI. “Adjusted equalized valuation excluding utilities” means equalized valuation excluding utilities as determined by the department of revenue administration [pursuant to RSA 76:8] for April 1 of the fiscal year 2 years prior to the fiscal year for which aid is to be determined.
4 Education Trust Fund. Amend the introductory paragraph of RSA 198:39, I to read as follows:
I. The state treasurer shall establish an education trust fund in the treasury. Moneys in such fund shall not be used for any purpose other than to distribute equitable education grants to municipalities’ school districts pursuant to RSA 198:42[, and to provide low and moderate income homeowners property tax relief under RSA 198:56-198:61]. The state treasurer shall deposit into this fund immediately upon receipt:
5 Tax Capacity Aid. Amend RSA 198:40-c to read as follows:
198:40-c [Statewide Enhanced Education] Tax Capacity Aid. Beginning July 1, 2005, and for the first year of every biennium thereafter, [statewide enhanced education] tax capacity aid shall be calculated by the department using the adjusted equalized valuation excluding utilities, as defined in RSA 198:38, for the fiscal year that was 2 years prior to the fiscal year for which aid is to be determined as follows:
I. Divide the total statewide equalized valuation of all municipalities, by the total statewide average daily membership in residence. The result shall be the statewide average equalized valuation excluding utilities per pupil.
II. Divide the equalized valuation of all property in a municipality, by the average daily membership in residence in the municipality. The result shall be the local equalized valuation without utilities per pupil.
III. Eligibility for [statewide enhanced education] tax capacity aid under this paragraph shall be determined as follows:
(a) If a municipality’s local equalized valuation per pupil as calculated in paragraph II is greater than or equal to the statewide average equalized valuation per pupil as calculated in paragraph I, no state enhanced aid shall be available.
(b) If a municipality’s local equalized valuation per pupil as calculated in paragraph II is less than the statewide average equalized valuation per pupil as calculated in paragraph I, the municipality shall be entitled to receive [statewide enhanced education] tax capacity aid in an amount equal to the following: subtract the local equalized valuation per pupil as calculated in paragraph II from the statewide average equalized valuation per pupil as calculated in paragraph I. This amount shall be divided by 1,000 then multiplied by [the statewide enhanced education tax rate to be imposed statewide in the fiscal year for which this calculation is made] 2.3. The result shall be multiplied by the average daily membership in residence in such municipality and shall be available to a municipality as [statewide enhanced education] tax capacity aid.
6 Section Heading; Determination of Grants. Amend the section heading of RSA 198:41 to read as follows:
198:41 Determination of Grants [and Excess Tax].
7 Determination of Grants. Amend RSA 198:41, III and IV to read as follows:
III. The department of education shall notify municipalities of the estimated amounts of grants [and excess statewide enhanced education tax payments] by the November 15 which precedes the fiscal year for which aid is determined.
IV. For the year in which aid is being calculated, total state aid for education shall be the sum total of all grants[; plus the sum total of statewide enhanced education tax assessed, less the amount of excess statewide enhanced education tax to be remitted pursuant to RSA 198:46].
8 Repeal. The following are repealed:
I. RSA 76:3, relative to the statewide enhanced education tax.
II. RSA 76:8, I and II, relative to the commissioner’s warrant.
III. RSA 76:9, relative to commissioner’s report.
IV. RSA 83-F:9, relative to the exemption for utilities from the statewide enhanced education tax.
V. RSA 198:39, I(g), relative to excess statewide enhanced education tax payments deposited in the general fund.
VI. RSA 198:41, II, relative to determination of excess enhanced education property tax.
VII. RSA 198:46, relative to excess education property tax payment.
VIII. RSA 198:47, relative to forms for excess education property tax payment.
IX. RSA 198:56-61, relative to low and moderate income homeowners property tax relief.
9 Effective Date. This act shall take effect July 1, 2007.
LBAO
06-2905
12/13/05
SB 315-FN-A-LOCAL - FISCAL NOTE
AN ACT repealing the statewide enhanced education tax.
FISCAL IMPACT:
The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill as it is awaiting information from the Department of Revenue Administration. The LBA has been waiting 3 weeks for the Department to reply. Bill introduction and scheduling commitments do not allow us to wait any longer. When completed, the fiscal note will be forwarded to the Senate Clerk's Office.