Revision: Nov. 13, 2023, 11:10 a.m.
2024 SESSION
24-2025.1
05/10
HOUSE BILL [bill number]
AN ACT relative to the education property tax and the authority of political subdivisions.
SPONSORS: [sponsors]
COMMITTEE: [committee]
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ANALYSIS
This bill replaces the statewide education property tax with a property tax contribution from political subdivisions based on the state education property tax warrant issued for the tax year beginning April 1, 2024. The bill also restores statutory authority for the determination of education grants for municipalities that tuition students to other institutions.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2025.1
05/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to the education property tax and the authority of political subdivisions.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Taxation; Real Estate. Amend RSA 72:6 to read as follows:
72:6 Real Estate. Political subdivisions of the state may impose a real estate tax. The state may impose real estate taxes only upon railroads pursuant to RSA 82 and utilities pursuant to RSA 83-F. All real estate, whether improved or unimproved, shall be taxed except as otherwise provided.
2 New Paragraph; Adequate Education; Education Trust Fund; Definition of Local Property Tax Contribution. Amend RSA 198:38 by inserting after paragraph VIII the following new paragraph:
IX. "Local property tax contribution" means the state education property tax warrant issued by the department of revenue pursuant to RSA 76:8 for the property tax year beginning April 1, 2024.
3 Determination of Education Grants. Amend RSA 198:41, I to read as follows:
I. Except for municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the department of education shall determine the total education grant for the municipality as follows:
(a) Add the per pupil cost of providing the opportunity for an adequate education for which each pupil is eligible pursuant to RSA 198:40-a, I-III, and from such amount;
(b) Subtract the [amount of the education tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:8 for the next tax year] local property tax contribution; and
(c) Add the municipality's extraordinary need grant pursuant to RSA 198:40-f.
I-a. For municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the department of education shall determine the total education grant for each municipality as the lesser of the 2 following calculations:
(a) The amount calculated in accordance with paragraph I of this section; or
(b) The total amount paid for items of current education expense as determined by the department of education minus the local property tax contribution for such municipality.
4 Repeal. The following are repealed:
I. RSA 76:3, relative to the education tax.
II. RSA 76:8, relative to the commissioner's warrant.
III. RSA 198:56-198:61, relative to low and moderate income homeowners property tax relief.
IV. RSA 198:39, I(d), relative to distribution of funds from the education trust fund for the low and moderate income homeowners property tax relief program.
I. Paragraphs I and II of section 4 of this act shall take effect December 1, 2024.
II. Paragraphs III and IV of section 4 of this act shall take effect January 1, 2026.
III. The remainder of this act shall take effect July 1, 2025.