Bill > HB1230

This bill introduces new restrictions on government spending and taxation at both the state and local levels in New Hampshire. It establishes that annual spending increases for the state and local taxing districts must be limited to a formula based on inflation (capped at 2.5%) and population change. The bill requires that any excess revenues up to 10% be deposited in a rainy day fund and used only for expenses within the spending limit, with any additional excess revenues to be refunded or used for debt repayment with voter approval. Notably, the bill creates a unique enforcement mechanism allowing citizens to file lawsuits challenging spending or tax increases that exceed these limits, with potential monetary awards if a jury finds a violation. Specifically, a successful plaintiff could be awarded up to 20 times their legal fees and court costs. The provisions would apply to the state, its political subdivisions, and local districts, preventing them from increasing spending, taxes, or debt faster than citizens' after-tax income growth without voter approval. The bill is set to take effect on April 1, 2027, giving government entities time to prepare for the new spending constraints.

Justice

https://gc.nh.gov/bill_Status/billinfo.aspx?id=1931&inflect=2