State would collect education tax revenue and set homeowner rebates

Municipalities would send state education property tax revenue to the Department of Revenue Administration for deposit in the Education Trust Fund. The payment covers state education property tax revenue collected by municipalities. Municipalities would pay in four quarterly installments under schedules and procedures set by department rules, after consultation with the education commissioner. The bill text makes the change effective July 1, 2025, and applies it to taxable periods ending on or after April 1, 2026.

The revenue commissioner would set the education tax rate to raise an inflation-adjusted $363 million target. The target is for the state education property tax. The target would be adjusted each year using the regional Consumer Price Index and rounded to the nearest $100. The tax rate would be rounded to the nearest half cent. The tax applies to people and property taxable under RSA 76:8, except property taxed under RSA 82 and RSA 83-F. The provision begins July 1, 2025; the fiscal note says the inflation adjustment would first apply to tax year 2026.

The revenue department would calculate homeowner rebates using local and state education taxes. The claimant must have lived in the homestead on the date of the final tax bill for the claim year. An exception applies to people on active military duty or temporarily away while keeping it as their primary home. A claimant must own a homestead subject to the education tax and have household income of $65,000 or less if single, or $77,500 or less if married or head of a New Hampshire household. The calculation uses the homestead's share of assessed property value, a $165,000 value factor adjusted by the local equalization ratio, and income-based percentages. Rebates are capped at $1,100 per claimant and $30 million total each fiscal year; checks would be reduced proportionally if needed. The bill text applies to taxable periods ending on or after April 1, 2026. The fiscal note says applications would begin May 1, 2027, with payments beginning in fiscal year 2028.

The revenue department would mail property tax relief application forms to qualifying prior-year recipients. The forms would go to homeowners who received relief under the rebate program in the prior year. The department would mail the forms by May 1 each year.

A legislative committee would study homeowner property tax relief and report findings and recommendations. The committee would study the low- and moderate-income homeowners property tax relief program and related property tax relief options. The committee would have four House members and three Senate members, with support from the revenue commissioner. It would consider possible relief for tenants, data and funding for the homeowner program, and a possible deferral program for homeowners temporarily unable to pay property taxes. The first meeting would be held within 45 days after this section takes effect. The report is due by November 1, 2025.