Bill > SB20

This bill, known as the "Property Tax Relief Act of 2025," aims to provide financial support to municipalities by having the state cover 7.5 percent of retirement system contributions for political subdivision employers, specifically for group I teachers and group II members (such as police and firefighters). Beginning in state fiscal year 2026, political subdivisions (excluding the state) will now pay 92.5 percent of total retirement contributions, with the state covering the remaining 7.5 percent. This change is designed to ease the local property tax burden and support public education and public safety by reducing the financial strain on cities and towns. The bill modifies existing retirement system regulations to specify that for group II members and teachers, the state will contribute a portion of the employer's retirement contributions, while maintaining that state employees and state-employed teachers will continue to have their full contributions paid by the state. The fiscal note indicates this will result in approximately $28 million in state expenditures in fiscal year 2026, increasing to $29.51 million by fiscal year 2028, with a corresponding decrease in expenditures for political subdivisions. The bill will take effect on July 1, 2025, and does not change the total amount of contributions due to the retirement system, only the funding source.

Budget and Finance

https://gc.nh.gov/bill_status/legacy/bs2016/bill_docket.aspx?lsr=186&sy=2025&sortoption=&txtsessionyear=2025&txtbillnumber=SB20