Revision: Nov. 28, 2023, 11:32 a.m.
HB 1105-FN-LOCAL - AS INTRODUCED
2024 SESSION
24-2057
05/10
HOUSE BILL 1105-FN-LOCAL
AN ACT relative to application of a local tax cap.
SPONSORS: Rep. Pauer, Hills. 36; Rep. Piemonte, Rock. 9; Rep. Brouillard, Rock. 1; Rep. Rollins, Sull. 3; Rep. T. Mannion, Hills. 1; Rep. S. Smith, Sull. 3; Rep. Lewicke, Hills. 36; Rep. R. Brown, Carr. 3; Sen. Murphy, Dist 16
COMMITTEE: Municipal and County Government
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ANALYSIS
This bill provides clarification that all recommended appropriations in the warrant are included when determining the estimated amount of local taxes to be raised for the fiscal year under the local tax cap.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2057
05/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to application of a local tax cap.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Local Tax Cap. Amend RSA 32:5-b, I to read as follows:
I. In a town or district that has adopted this section, the estimated amount of local taxes to be raised for the fiscal year[, as shown on the] shall include the operating budget and all other appropriations certified by the governing body or the budget committee and posted [with] on the warrant for the annual meeting pursuant to RSA 32:5[,]. The estimated amount of local taxes to be raised for the fiscal year shall not exceed the local taxes raised for the prior year, as shown on the same budget and adjusted as provided in paragraph I-a, by more than the tax cap authorized when this section was adopted.
2 Applicability; Required. RSA 32:5-b, as amended by section 1 of this act, shall apply to local tax caps and shall not require local amendment or re-adoption by the town or district.
3 Effective Date. This act shall take effect 60 days after its passage.
24-2057
10/12/23
HB 1105-FN-LOCAL- FISCAL NOTE
AS INTRODUCED
AN ACT relative to application of a local tax cap.
FISCAL IMPACT: [ ] State [ ] County [ X ] Local [ ] None
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Estimated Political Subdivision Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Local Revenue | Indeterminable | Indeterminable | Indeterminable | Indeterminable | ||
Local Expenditures | $0 | $0 | $0 | $0 | ||
METHODOLOGY:
This bill requires all recommended appropriations in the warrant to be included when determining the estimated amount of local taxes to be raised under the local tax cap. The New Hampshire Municipal Association states currently the tax cap does not mandate appropriations to be included when calculating the amount to be raised. Currently, eight political subdivisions (6 towns and 2 school districts) have adopted a local tax cap and would be impacted by this bill. The effect on a municipality's ability to generate local revenue is uncertain and will vary depending on the specific tax cap language and the municipality's financial requirements in a given year, taking into account all available funding sources to offset taxation during the budget and warrant articles creation. This bill's modification necessitates that all municipalities with a tax cap calculate the cap based on gross revenue rather than a fixed amount or percentage directly tied to tax increases in the cap calculation resulting in an indeterminable impact on local revenue.
AGENCIES CONTACTED:
New Hampshire Municipal Association