HB 1300 — establishing a school district local tax cap question for the state general elections of 2026 and 2028 and related limitations on central office administrative expenses in school districts.

CHAPTER 324 HB 1300 - VERSIONFINAL ADOPTEDVERSION BY BOTH BODIES 11Mar2026...

2173EBA SESSION 26-2870 05/06 HOUSE BILL 1300 AN ACT establishing a school district local tax cap question for the state general elections of 2026 and 2028 and related limitations on central office administrative expenses in school districts.

Establishes a school district local tax cap question for the state general electionelections of 2026.2026 and 2028.

CHAPTER 324 HB 1300 - VERSIONFINAL ADOPTEDVERSION BY BOTH BODIES 11Mar2026...

2173EBA 26-2870 05/06 STATE OF NEW HAMPSHIRE In the Year of Our Lord Two Thousand Twenty-Six AN ACT establishing a school district local tax cap question for the state general elections of 2026 and 2028 and related limitations on central office administrative expenses in school districts.

1324:1 New Section;

Whenever the question required under paragraph I is printed on the state general election ballot or on a separate official ballot pursuant to paragraph II, the secretary of state shall HB 1300 - VERSION ADOPTED BY BOTH BODIES - Page 2 - ensure that said question is also included on all applicable absentee ballots consistent with RSA 656:36.

CHAPTER 324 HB 1300 - FINAL VERSION - Page 2 - V.

Adoption requires a three-three-fifths fifths (3/5) majority vote.” Towns and wards serving more than one school district shall include the names of all such school districts in the question.

The secretary shall schedule a recount, to be HB 1300 - VERSION ADOPTED BY BOTH BODIES - Page 3 - conducted by the school administrative unit, not earlier than 5 days nor later than 10 days after the date the secretary receives the petition.

CHAPTER 324 HB 1300 - FINAL VERSION - Page 3 - Prior fiscal year property tax levy (excluding bonded capital costs as defined in paragraph XVI) × (1 + inflation + net new taxable property growth).

Bonded capital costs, as defined in paragraph XVI, shall be excluded from both the prior fiscal year property tax levy and the maximum allowable levy calculated under this paragraph.paragraph.No amount attributable to bonded capital costs shall be included in the prior fiscal year levy for purposes of calculating the maximum allowable levy in any subsequent year.

No(b) amount"Inflation" attributablemeans tothe bondedone capitalyear costs(12 shallmonth) bepercentage includedchange in the priorConsumer fiscalPrice yearIndex levy for purposesAll Urban Consumers, Northeast Region, as published by the Bureau of calculatingLabor Statistics, United States Department of Labor, using the maximumamount allowablepublished levyfor the month of March in anythe subsequentprior fiscal year.

(b) "Inflation" means the one year (12 month) percentage change in the Consumer Price Index for All urban Consumers, Northeast Region, as published by the Bureau of Labor Statistics, United States Department of Labor, using the amount published for the month of March in the prior fiscal year.

and other non-school-based administrative functions, regardless of physical location or building HB 1300 - VERSION ADOPTED BY BOTH BODIES - Page 4 - assignment.

CHAPTER 324 HB 1300 - FINAL VERSION - Page 4 - X.

HB 1300 - VERSION ADOPTED BY BOTH BODIES - Page 5 - (2) Proposed appropriations by the governing body and budget committee and estimated revenues going into the annual meeting, showing the estimated amount of property taxes to be raised for the school district budget or school administrative unit central office administrative budgets, or both;

(b) Upon review of documentation submitted under subparagraph (a), if the commissioner of the department of revenue administration determines that the certified school district budget results in estimated taxes exceeding the adopted school administrative unit fixed cap and that no valid override vote CHAPTER 324 HB 1300 - FINAL VERSION - Page 5 - was obtained as provided in this section, the governing body shall reduce the appropriation of the certified budget by the amount that the certified budget exceeds the cap.

Nothing in this section may be construed to repeal, supersede, or diminish any property tax limitation that is more restrictive under existing law, a municipal charter, or a local HB 1300 - VERSION ADOPTED BY BOTH BODIES - Page 6 - ordinance.

Any school district local tax cap or school administrative unit fixed cap adopted pursuant to this section shall cease to have legal CHAPTER 324 HB 1300 - FINAL VERSION - Page 6 - effect as of that date.

2324:2 New Paragraph;

3324:3 Prospective Repeal.

RSA 32:5-i, relative to the Schoolschool Districtdistrict Locallocal Taxtax Capcap and Schoolschool Administrativeadministrative Fixedfixed Capcap on Centralcentral Officeoffice Administrativeadministrative Budgets,budgets, is repealed.

4324:4 Effective Date.

HBApproved: 1300 - VERSION ADOPTED BY BOTH BODIES LBA 26-2870 05/27/2026 HB 1300- FISCAL NOTE AS AMENDED BY THE SENATE (AMENDMENTS #2026-1851s and #2026-1876s) AN ACT establishing a school district local tax cap question for the state general election of and related limitations on central office administrative expenses in school districts.

FISCALJuly IMPACT:15, 2026 Effective Date:

ThisI. bill does not provide funding, nor does it authorize new positions.

EstimatedSection State3 Impacteffective FYJanuary 20261, FY2032 2027II. FY 2028 FY 2029 Revenue $0 $0 $0 $0 Revenue Fund(s) None Expenditures* $0 $100,000 $0 $0 Funding Source(s) General Fund Appropriations* $0 $0 $0 $0 Funding Source(s) None *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill Estimated Political Subdivision Impact FY 2026 FY 2027 FY 2028 FY 2029 Local Revenue $0 $0 Possible Indeterminable Decrease Local Expenditures $0 $0 Possible Indeterminable Decrease METHODOLOGY:

ThisRemainder billeffective requiresSeptember municipalities1, to2026 voteCHAPTER on324 localHB tax1300 cap- questionsFINAL forVERSION their school district and on the school administrative unit (SAU) central office administrative budget in the November 2026 general election.

In order for the caps to be adopted there must be a 3/5 majority vote in favor.

If a municipality were to adopt the school district tax cap it would be limited to annual local school tax increases to the prior year’s amount, adjusted for inflation and growth in taxable property attributable to new construction, excluding bonded capital costThe SAU central office administrative tax cap would be limited to 6 percent of the combined school district appropriations, excluding bonded capital costs, with certain override provisions.

The Department of Revenue Administration (DRA) would be required to certify taxable property growth and bonded capital costs, receive and review detailed compliance documentation from districts and SAUs that adopt caps, ensure no tax rate is set above certified limits, and update reporting systems and rate setting software to administer the caps beginning with the fiscal year budget cycle.

DRA anticipates approximately $100,000 in system update costs.

The Department of Education and DRA indicate that to the extent school districts adopt a tax cap, local school district revenue and school district expenditures could decrease.

AGENCIES CONTACTED:

Department of Revenue Administration and Department of Education