Bill would set statewide school property tax and offer tax reductions

The state would set the education property tax at $5 for every $1,000 of taxable property value. The tax would apply to people and property taxable under RSA 76:8, except property taxed under RSA 82 or RSA 83-F. The tax would not apply to property taxed under RSA 82 or RSA 83-F. The rate-setting provision would begin July 1, 2027, and apply in each fiscal year after that. The rate set would take effect for the following fiscal year.

Municipal assessors would send the education property tax to the Department of Revenue Administration, which would distribute it to municipalities for local school districts. The instructions cover education tax warrants issued to municipalities and the tax money collected under them. Municipalities could still assess additional local property taxes when the education tax, education trust fund distributions, and other revenue do not fully fund school district budgets. The commissioner would issue each tax warrant by December 15. The bill says it would take effect July 1, 2027.

The bill would set amounts for an excellence in education grant and repeal provisions for extraordinary need grants. The amounts would determine resources for the excellence in education grant; the repeals concern extraordinary need grants and a provision used to calculate education grants. The listed amounts are $10,000 per enrolled student and an additional $4,000 per student who qualifies for a free or reduced-price meal. The required revenue would rise by 2 percent each year. The bill says it would take effect July 1, 2027.