HB 1505 — requiring municipalities, towns, and cities to submit documentation to the department of revenue administration proving they are in compliance with local budget and tax caps.

HB 1505-FN - AS INTRODUCEDAMENDED SESSIONBY 26-2503THE 07/06 HOUSE BILL12Feb2026... 1505-FN AN ACT requiring municipalities, towns, and cities to submit documentation to the department of revenue administration proving they are in compliance with local budget and tax caps.

0233h SESSION 26-2503 07/06 HOUSE BILL 1505-FN AN ACT requiring municipalities, towns, and cities to submit documentation to the department of revenue administration proving they are in compliance with local budget and tax caps.

HB 1505-FN - AS INTRODUCEDAMENDED 26-2503BY 07/06THE STATEHOUSE OF12Feb2026... NEW HAMPSHIRE In the Year of Our Lord Two Thousand Twenty-Six AN ACT requiring municipalities, towns, and cities to submit documentation to the department of revenue administration proving they are in compliance with local budget and tax caps.

0233h 26-2503 07/06 STATE OF NEW HAMPSHIRE In the Year of Our Lord Two Thousand Twenty-Six AN ACT requiring municipalities, towns, and cities to submit documentation to the department of revenue administration proving they are in compliance with local budget and tax caps.

(c) For the purposes of determining when the amount of local taxes raised by the town or district exceed the local tax cap under this section, the amount of appropriations of the operating HB 1505-FN - AS INTRODUCEDAMENDED BY THE HOUSE - Page 2 - budget counting towards the tax cap shall be reduced by the estimated revenues reported to the department of revenue administration in the posted budget pursuant to RSA 32:5.

In a school district that has adopted this section, the total amount raised and appropriated for the fiscal year, including the operating budget and all other warrant articles with a tax impact, as shown on the budget certified by the school board or the budget committee and posted with the warrant for the annual meeting pursuant to RSA 32:5, shall not exceed the current per pupil cost, as defined herein, times the average daily membership in residence (ADMR), pursuant to RSA 198:38, I-a, of the school district as of October 1 of the year immediately preceding the proposed budget year as reported to[to] by the department of education [times (1+ IF), where IF is an amount for an annual increase for inflation].

The first year after the budget cap is adopted, the current per pupil cost shall be the per pupil cost adopted in the warrant article per RSA 32:5-f, IV.IIn subsequent years, the current per pupil cost shall be the previous year's current per pupil cost times [(1+IFP)] (1+IF), where [IFP] IF is the [previous] current year's [IF] annual increase for inflation 5 Towns, Cities, Village Districts, and Unincorporated Places;

In subsequent years, the current per pupil cost shall be the previous year's current per pupil cost times [(1+IFP)] (1+IF), where [IFP] IF is the [previous] current year's [IF] annual increase for inflation.

5 Towns, Cities, Village Districts, and Unincorporated Places;

HB 1505-FN - AS AMENDED BY THE HOUSE - Page 3 - (a) The first year after the budget cap is adopted, the current per resident expenditure shall be the per resident expenditure adopted in the warrant article under RSA 32:5-h, IV.

In HB 1505-FN - AS INTRODUCED - Page 3 - subsequent years, the current per resident expenditure shall be the previous year's current per resident expenditure times [(1+IFP)] (1+IF), where [IFP] IF is the [previous] current year's [IF] annual increase for inflation.

9 Applicability.Municipal Budget Law;

RSAPreparation 21-J:34, RSA 32:5-b, RSA 32:5-e, and RSA 32:5-g, as amended by this act, shall apply to the local tax caps, school district budget caps, and town budget caps adopted prior to the effective date of thisBudgets; act and shall not require local amendment or re-adoption by towns or districts.

HBLocal 1505-FNTax -Cap. AS INTRODUCED - Page 4 - 10 Effective Date.

ThisAmend actRSA shall32:5-b, takeI-b(b)(1) effectto 60read daysas afterfollows: its passage.

LBA 26-2503 12/4/25 HB 1505-FN-1505-FN FISCAL- NOTE AS INTRODUCEDAMENDED ANBY ACTTHE requiringHOUSE municipalities,- towns,Page and4 cities- to(1) submit"Attendance" documentationshall tomean the departmentaverage ofdaily revenuemembership administrationin provingresidence they(ADMR) areof inthe complianceschool withdistrict, localpursuant budgetto andRSA tax198:38, caps.I-a.

"This year's attendance" shall be the annual ADMR reported [to] by the department of education as of October 1 preceding the date of the budget hearing held pursuant to RSA 32:5, I.

"Last year's attendance" shall be the annual ADMR reported [to] by the department of education as of October 1 of the year prior to the annual ADMR reported for "This year's attendance".

10 Municipal Budget Law;

Application.

Amend RSA 32:2 to read as follows:

32:2 Application.

RSA 32:1-13, shall apply to all towns, school districts, cooperative school districts, village districts, municipal economic development and revitalization districts created under RSA 162-K, and any other municipal entities, including those created pursuant to RSA 53-A or 53-B, which adopt their budgets at an annual meeting of their voters, except RSA 32:5-b[,] which shall apply only in those towns or districts adopting that section pursuant to RSA 32:5-c, except RSA 32:5-e which shall apply only in those school districts adopting that section pursuant to RSA 32:5-f, and except RSA 32:5-g which shall apply only in those towns adopting that section pursuant to RSA 32:5-h.

RSA 32:14-23, concerning budget committees, shall apply only in those towns or districts adopting that subdivision pursuant to RSA 32:14, I, and shall apply automatically in school districts or village districts located wholly within towns adopting that subdivision.

11 Municipal Budget Law;

Preparation of Budgets;

Adoption of School District Budget Cap.

Amend RSA 32:5-f, IV to read as follows:

IV.

If, under RSA 32:5-e, II, a fixed percentage is used for the annual increase for inflation, the wording of the question shall be:

"Shall we adopt the provisions of RSA 32:5-e, and implement a budget cap whereby the school board (or budget committee) shall not submit a recommended budget that is higher than _____ dollars per pupil cost times the average daily membership in residence of the school district as of October 1 of the year immediately preceding the proposed budget year, plus with a _____ percent annual increase on the per pupil cost for inflation.

Requires a 3/5ths majority [of the school district] to adopt." Alternatively, if an annual inflation index is used, the wording of the question shall be:

"Shall we adopt the provisions of RSA 32:5-e, and implement a budget cap whereby the school board (or budget committee) shall not submit a recommended budget that is higher than _____ dollars per pupil cost times the average daily membership in residence of the school district as of October 1 of the year immediately preceding the proposed budget year, [plus] with an annual increase on the per pupil cost for inflation using (the index) published by (the U.S.

Bureau of Labor Statistics or American City and County) as of October 1.

Requires a 3/5ths majority [of the school district] to adopt." 12 Municipal Budget Law;

Preparation of Budgets;

Adoption of Town Budget Cap.

Amend RSA 32:5-h, IV to read as follows:

HB 1505-FN - AS AMENDED BY THE HOUSE - Page 5 - IV.

If, under RSA 32:5-g, II, a fixed percentage is used for the annual increase for inflation, the wording of the question shall be: