Bill > HB1708

This bill aims to reduce the burden of the Statewide Education Property Tax (SWEPT) on taxpayers while maintaining the same level of state education funding through several key changes. The bill increases the Business Profits Tax (BPT) rate from 7.5% to 8.5% for taxable periods ending on or after December 31, 2026, and gradually increases the percentage of BPT revenue allocated to the Education Trust Fund from 40% to 44.2% by fiscal year 2029. Additionally, the bill reduces the statutory SWEPT amount from $363,000,000 to $273,000,000 by fiscal year 2030, with incremental reductions in fiscal years 2026 and 2027. To mitigate potential negative impacts on municipalities, the bill requires the Department of Education to identify and compensate municipalities for any decreases in education grants, with total payments capped at $90 million. The changes are designed to shift more of the education funding burden from property taxes to business taxes while ensuring that local schools continue to receive adequate funding.

Budget and Finance

https://gc.nh.gov/bill_Status/billinfo.aspx?id=1859&inflect=2