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1 Preparation of Budgets; Local Tax Cap. Amend RSA 32:5-b, I-a through I-b(a) to read as follows:
I-a. If the local taxes raised for the prior year were reduced by any fund balance brought forward from previous years, the amount of such reduction shall be added back and included in the amount to which the tax cap is applied under paragraph I.
I-b.(a) In a town or district that has adopted this paragraph, a tax cap limiting the base amount to be raised by property taxes to last year's base shall be adjusted to account for inflation and change in population for towns or village districts, or attendance for school districts, according to the following formula: This year's base = (Last year's base ) x (1 + CPI) x (This year's population or attendance / Last year's population or attendance).
2 Applicability. RSA 32:5-b as amended by section 1 of this act shall apply to the local tax caps adopted prior to the effective date of this act 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.
Text to be added highlighted in green.
1 Preparation of Budgets; Local Tax Cap. Amend RSA 32:5-b, I-a through I-b(a) to read as follows:
I-a. If the local taxes raised for the prior year were reduced by any fund balance brought forward from previous years, the amount of such reduction shall be added back and included in the amount to which the tax cap is applied under paragraph I. The amount of any new annual debt service approved by the legislative body as part of a bond vote at an annual or special meeting shall be included in the tax base once repayment begins.
I-b.(a) In a town or district that has adopted this paragraph, a tax cap limiting the base amount to be raised by property taxes to last year's base shall be adjusted to account for inflation and change in population for towns or village districts, or attendance for school districts, and the amount of any new annual debt service approved by the legislative body as part of a bond vote at an annual or special meeting shall be included in the tax base once repayment begins, according to the following formula: This year's base = (Last year's base plus newly approved annual debt service at the previous annual meeting and special meeting ) x (1 + CPI) x (This year's population or attendance / Last year's population or attendance).
2 Applicability. RSA 32:5-b as amended by section 1 of this act shall apply to the local tax caps adopted prior to the effective date of this act 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.