State would route school property taxes into an education fund

The revenue commissioner would set the statewide school property tax amount, and municipalities would send what they collect to the state treasurer. The tax applies to taxable property statewide, except property taxed under RSA 82 and RSA 83-F. Municipalities would send collections in four quarterly payments under procedures set by the revenue department. The starting target is $378 million, with a 2 percent annual increase after that. Money deposited in the education trust fund would be used only for education grants, tax bill costs, and homeowner tax relief. Sections 1–7 would apply to statewide education property taxes levied in or after fiscal year 2028.

The revenue department would calculate homeowner refunds using local and statewide school property taxes and mail tax forms to prior-year recipients. The home-value calculation uses the lesser of the claimant’s share of assessed home value or $165,000 adjusted by the local equalization ratio. The refund calculation includes local and statewide school tax rates. Claimants must own a homestead subject to the statewide tax and live there on the final tax bill date. People on active military duty or temporarily away while keeping the home as their main residence are exceptions to the residence rule. Household income must be $85,000 or less for a single person, or $100,000 or less for a married person or head of a New Hampshire household. Refunds depend on income and a capped home-value calculation; each claimant’s refund cannot exceed $1,100, and total refunds cannot exceed $30 million in a fiscal year. If needed, refunds would be reduced proportionally to meet that total limit. These provisions would apply to taxes levied in or after fiscal year 2028. The department would mail forms by May 1 to homeowners who received relief the prior year.

A committee of lawmakers would study homeowner tax relief and make recommendations. The study would consider possible relief for tenants, how income relates to property values and taxes, whether available data is adequate, and a possible statewide option to delay homeowners’ payments during temporary hardship. The committee would have three senators and four representatives, with help from the revenue department. The first meeting would be held within 45 days after this section takes effect. The report would be due by November 1, 2026.