Bill Text - SB52 (2021)

(New Title) relative to municipal charter provisions for tax caps.


Revision: Jan. 19, 2021, 11:46 a.m.

SB 52  - AS INTRODUCED

 

 

2021 SESSION

21-0860

06/10

 

SENATE BILL 52

 

AN ACT relative to city charter provisions for tax caps.

 

SPONSORS: Sen. Avard, Dist 12; Sen. Giuda, Dist 2; Rep. Pauer, Hills. 26; Rep. Homola, Hills. 27

 

COMMITTEE: Election Law and Municipal Affairs

 

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ANALYSIS

 

This bill requires city charter exclusions and ordinances that have the effect of an override of a tax cap, to require a supermajority vote.

 

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

21-0860

06/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty One

 

AN ACT relative to city charter provisions for tax caps.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  City Charters.  Amend RSA 49-C:33, I(d) to read as follows:

(d) A limit on the annual spending increases that increase the amount raised by taxes under the city budget adopted pursuant to RSA 49-C:23. Such a tax cap shall provide for an override threshold on a vote to exceed the limit on annual increases which shall be by a supermajority as determined in the charter. A tax cap provision in the city charter may provide for specific exclusions for dedicated, enterprise, or self-supporting funds or accounts, capital reserve funds, grants, or revenue from sources other than local taxes.

(1)  If a city charter has an exclusion provision that requires a supermajority vote it shall be considered equivalent to an override threshold for the purposes of meeting the requirement that a tax cap shall provide for such an override threshold or for the purposes of defining an override threshold in subparagraphs (2)-(4).

(2)  When an exclusion is enacted for the purpose of, or has the effect of redistributing budget items from within the limits of the tax cap to outside the limits of the tax cap it shall be construed as the functional equivalent to an override and shall require the same supermajority vote as an override threshold.

(3)  When an ordinance is enacted that has the effect of redistributing budget items from within the limits of the tax cap to outside the limits of the tax cap it shall be construed as the functional equivalent to an override and shall require the same supermajority vote as an override threshold.

(4)  When accounting practices that change the organization of a budget have the effect of redistributing budget items from within the limits of the tax cap to outside the limits of the tax cap it shall be construed as the functional equivalent to an override and the budget shall require the same supermajority vote as an override threshold.

2  Effective Date.  This act shall take effect 60 days after its passage.