Text to be removed highlighted in red.
1 New Paragraph; Adequate Education; Education Trust Fund; Definition of Local Contribution. Amend RSA 198:38 by inserting after paragraph VIII the following new paragraph:
IX. "Local contribution" means the lesser of (a) the amount of the state education property tax warrant issued by the department of revenue administration as calculated in former RSA 76:8 prior to its repeal for the property tax year beginning April 1, 2025; and (b) the cost of providing the opportunity for an adequate education pursuant to RSA 198:40-a, I-III. Local revenue used to fund the opportunity for an adequate education in the determination year shall be no less than this amount. The commissioner of the department of education shall adopt rules under RSA 541-A regarding the local revenue calculation under this paragraph.
2 Determination of Education Grants. Amend RSA 198:41, I and I-a 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 ; 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 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 .
3 New Paragraph; Local Tax Cap; 2026 Tax Year. Amend RSA 32:b-5 by inserting after paragraph I-a the following new paragraph:
I-b. For the 2026 tax year only, local education taxes for the prior fiscal year shall be the sum of the state and local education property taxes raised for 2025.
4 New Paragraph; Semi-Annual Collection of Taxes in Certain Cities and Towns. Amend RSA 76:15-a by inserting after paragraph I the following new paragraph:
I-a. For the 2026 tax year only, the previous year's local education property tax rate shall be the sum of the state and local education property tax rates for 2025.
5 New Paragraph; Quarterly Billing of Taxes in Certain Cities and Towns. Amend RSA 76:15-aa by inserting after paragraph II the following new paragraph:
II-a. For the 2026 tax year only, for purposes of the quarterly billing calculation under paragraph I or II, the previous year's local education property tax rate shall be the sum of the state and local education property tax rates for 2025.
6 Applicability. Sections 3-5 of this act shall apply to the tax year beginning April 1, 2026.
7 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.
8 Effective Date.
I. Paragraphs I and II of section 7 of this act shall take effect July 1, 2025.
II. Paragraphs III and IV of section 7 of this act shall take effect January 1, 2027.
III. Sections 1 and 2 of this act shall take effect July 1, 2026.
IV. The remainder of this act shall take effect January 1, 2026.
Text to be added highlighted in green.
1 New Paragraph; Adequate Education; Education Trust Fund; Definition of Local Contribution. Amend RSA 198:38 by inserting after paragraph VIII the following new paragraph:
IX. "Local contribution" means the lesser of (a) the amount of the state education property tax warrant issued by the department of revenue administration as calculated in former RSA 76:8 prior to its repeal for the property tax year beginning April 1, 2025; and (b) the cost of providing the opportunity for an adequate education pursuant to RSA 198:40-a, I-III. Local revenue used to fund the opportunity for an adequate education in the determination year shall be no less than this amount. The commissioner of the department of education shall adopt rules under RSA 541-A regarding the local revenue calculation under this paragraph.
2 Determination of Education Grants. Amend RSA 198:41, I and I-a 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 local 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 contribution .
3 New Paragraph; Local Tax Cap; 2026 Tax Year. Amend RSA 32:b-5 by inserting after paragraph I-a the following new paragraph:
I-b. For the 2026 tax year only, local education taxes for the prior fiscal year shall be the sum of the state and local education property taxes raised for 2025.
4 New Paragraph; Semi-Annual Collection of Taxes in Certain Cities and Towns. Amend RSA 76:15-a by inserting after paragraph I the following new paragraph:
I-a. For the 2026 tax year only, the previous year's local education property tax rate shall be the sum of the state and local education property tax rates for 2025.
5 New Paragraph; Quarterly Billing of Taxes in Certain Cities and Towns. Amend RSA 76:15-aa by inserting after paragraph II the following new paragraph:
II-a. For the 2026 tax year only, for purposes of the quarterly billing calculation under paragraph I or II, the previous year's local education property tax rate shall be the sum of the state and local education property tax rates for 2025.
6 Applicability. Sections 3-5 of this act shall apply to the tax year beginning April 1, 2026.
7 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.
8 Effective Date.
I. Paragraphs I and II of section 7 of this act shall take effect July 1, 2025.
II. Paragraphs III and IV of section 7 of this act shall take effect January 1, 2027.
III. Sections 1 and 2 of this act shall take effect July 1, 2026.
IV. The remainder of this act shall take effect January 1, 2026.