Bill > HB527

This bill replaces the statewide education property tax (SWEPT) with a new mechanism called "local contribution" starting in the tax year beginning April 1, 2025. Under the new system, each municipality will be required to contribute a local revenue amount that is the lesser of either the state education property tax warrant issued for the 2025 tax year or the cost of providing an adequate education. The bill modifies how education grants are calculated by subtracting this local contribution instead of the previous education tax warrant. It also includes several transitional provisions for the 2026 tax year to ensure a smooth shift, such as adjusting local tax caps and tax collection methods to account for the change. Additionally, the bill repeals several existing statutes related to the education tax, including provisions for low- and moderate-income homeowners' property tax relief. The fiscal impact analysis suggests this change will reduce state education trust fund revenue by approximately $363 million annually and local revenue by about $29 million per year, while maintaining the same overall funding for education adequacy grants.

Education

https://gc.nh.gov/bill_status/legacy/bs2016/bill_status.aspx?lsr=109&sy=2025&sortoption=&txtsessionyear=2025&txtbillnumber=HB527