1 Statement of Purpose. The purpose of this act is to reduce the burden of the statewide education property tax (SWEPT) on taxpayers while maintaining the same level of state funding that SWEPT provides to public schools.

2 The State and Its Government; Department of Revenue Administration; Equalization Procedure. Amend the introductory paragraph of RSA 21-J:9-a to read as follows:

The following procedures shall apply in determining the equalization of property within the cities, towns, and unincorporated places required by RSA 21-J:3, XIII , but shall not affect a municipality's requirements for inventory of property and assessment of taxes as of April 1:

3 Taxation; Business Profits Tax; Imposition of Tax. Amend RSA 77-A:2, III to read as follows:

III. For all taxable periods ending on or after December 31, 2023 , a tax is imposed at the rate of 7.5 percent upon the taxable business profits of every business organization.

4 Taxation; Business Profits Tax; Distribution of Funds. RSA 77-A:20-a, I is repealed and reenacted to read as follows:

I. The commissioner shall determine 40 percent of the revenue produced by the tax imposed by RSA 77-A:2 for each fiscal year and shall certify such amounts to the state treasurer by October 1 of that year for deposit in the education trust fund established by RSA 198:39.

5 Taxation; Business Profits Tax; Distribution of Funds. RSA 77-A:20-a, I is repealed and reenacted to read as follows:

I. The commissioner shall determine 42 percent of the revenue produced by the tax imposed by RSA 77-A:2 for each fiscal year and shall certify such amounts to the state treasurer by October 1 of that year for deposit in the education trust fund established by RSA 198:39.

6 Taxation; Business Profits Tax; Distribution of Funds. RSA 77-A:20-a, I is repealed and reenacted to read as follows:

I. The commissioner shall determine 44.2 percent of the revenue produced by the tax imposed by RSA 77-A:2 for each fiscal year and shall certify such amounts to the state treasurer by October 1 of that year for deposit in the education trust fund established by RSA 198:39.

7 Taxation; Apportionment, Assessment and Abatement of Taxes; Education Tax RSA 76:3 is repealed and reenacted to read as follows:

I. For the fiscal year beginning July 1, 2026, the commissioner of the department of revenue administration shall set the education tax rate at a level sufficient to generate revenue of $346,000,000 when imposed on all persons and property taxable pursuant to RSA 76:8, except property subject to tax under RSA 82 and RSA 83-F. The education property tax rate shall be effective for the following fiscal year. The rate shall be set to the nearest 1/2 cent necessary to generate the revenue required in this section.

II. For the fiscal year beginning July 1, 2027, the commissioner of the department of revenue administration shall set the education tax rate at a level sufficient to generate revenue of $284,000,000 when imposed on all persons and property taxable pursuant to RSA 76:8, except property subject to tax under RSA 82 and RSA 83-F. The education property tax rate shall be effective for the following fiscal year. The rate shall be set to the nearest 1/2 cent necessary to generate the revenue required in this section.

III. Beginning July 1, 2028, and every fiscal year thereafter, the commissioner of the department of revenue administration shall set the education tax rate at a level sufficient to generate revenue of $273,000,000 when imposed on all persons and property taxable pursuant to RSA 76:8, except property subject to tax under RSA 82 and RSA 83-F. The education property tax rate shall be effective for the following fiscal year. The rate shall be set to the nearest 1/2 cent necessary to generate the revenue required in this section.

8 Department of Education; Supplemental Education Payment Directive. The commissioner of the department of education, in consultation with the commissioner of the department of revenue administration, shall determine how municipality's total education grants and statewide education property tax are decreased due to the state education property tax reduction as a result of this act. Any amounts identified shall be paid to impacted municipalities pursuant to the distribution schedule under RSA 198:42. Payments to impacted municipalities shall be capped at $90,000,000.

9 Effective Date.

I. Section 5 of this act shall take effect July 1, 2027.

II. Section 6 of this act shall take effect July 1, 2028.

III. The remainder of this act shall take effect July 1, 2026.

1 Statement of Purpose. The purpose of this act is to reduce the burden of the statewide education property tax (SWEPT) on taxpayers while maintaining the same level of state funding that SWEPT provides to public schools.

2 The State and Its Government; Department of Revenue Administration; Equalization Procedure. Amend the introductory paragraph of RSA 21-J:9-a to read as follows:

The following procedures shall apply in determining the equalization of property within the cities, towns, and unincorporated places required by RSA 21-J:3, XIII orRSA 76 , but shall not affect a municipality's requirements for inventory of property and assessment of taxes as of April 1:

3 Taxation; Business Profits Tax; Imposition of Tax. Amend RSA 77-A:2, III to read as follows:

III. For all taxable periods ending on or after December 31, 2026 , a tax is imposed at the rate of 8.5 percent upon the taxable business profits of every business organization.

4 Taxation; Business Profits Tax; Distribution of Funds. RSA 77-A:20-a, I is repealed and reenacted to read as follows:

I. The commissioner shall determine 40 percent of the revenue produced by the tax imposed by RSA 77-A:2 for each fiscal year and shall certify such amounts to the state treasurer by October 1 of that year for deposit in the education trust fund established by RSA 198:39.

5 Taxation; Business Profits Tax; Distribution of Funds. RSA 77-A:20-a, I is repealed and reenacted to read as follows:

I. The commissioner shall determine 42 percent of the revenue produced by the tax imposed by RSA 77-A:2 for each fiscal year and shall certify such amounts to the state treasurer by October 1 of that year for deposit in the education trust fund established by RSA 198:39.

6 Taxation; Business Profits Tax; Distribution of Funds. RSA 77-A:20-a, I is repealed and reenacted to read as follows:

I. The commissioner shall determine 44.2 percent of the revenue produced by the tax imposed by RSA 77-A:2 for each fiscal year and shall certify such amounts to the state treasurer by October 1 of that year for deposit in the education trust fund established by RSA 198:39.

7 Taxation; Apportionment, Assessment and Abatement of Taxes; Education Tax RSA 76:3 is repealed and reenacted to read as follows:

I. For the fiscal year beginning July 1, 2026, the commissioner of the department of revenue administration shall set the education tax rate at a level sufficient to generate revenue of $346,000,000 when imposed on all persons and property taxable pursuant to RSA 76:8, except property subject to tax under RSA 82 and RSA 83-F. The education property tax rate shall be effective for the following fiscal year. The rate shall be set to the nearest 1/2 cent necessary to generate the revenue required in this section.

II. For the fiscal year beginning July 1, 2027, the commissioner of the department of revenue administration shall set the education tax rate at a level sufficient to generate revenue of $284,000,000 when imposed on all persons and property taxable pursuant to RSA 76:8, except property subject to tax under RSA 82 and RSA 83-F. The education property tax rate shall be effective for the following fiscal year. The rate shall be set to the nearest 1/2 cent necessary to generate the revenue required in this section.

III. Beginning July 1, 2028, and every fiscal year thereafter, the commissioner of the department of revenue administration shall set the education tax rate at a level sufficient to generate revenue of $273,000,000 when imposed on all persons and property taxable pursuant to RSA 76:8, except property subject to tax under RSA 82 and RSA 83-F. The education property tax rate shall be effective for the following fiscal year. The rate shall be set to the nearest 1/2 cent necessary to generate the revenue required in this section.

8 Department of Education; Supplemental Education Payment Directive. The commissioner of the department of education, in consultation with the commissioner of the department of revenue administration, shall determine how municipality's total education grants and statewide education property tax are decreased due to the state education property tax reduction as a result of this act. Any amounts identified shall be paid to impacted municipalities pursuant to the distribution schedule under RSA 198:42. Payments to impacted municipalities shall be capped at $90,000,000.

9 Effective Date.

I. Section 5 of this act shall take effect July 1, 2027.

II. Section 6 of this act shall take effect July 1, 2028.

III. The remainder of this act shall take effect July 1, 2026.