Vote Smart's Synopsis:

Vote to adopt a conference report that establishes a ballot measure to limit school district local taxes in New Hampshire.

Highlights:

• Requires a question for a local tax cap and a fixed cap on school administrative unit (SAU) central office office budgets to appear on the ballot for the November, 2026 state general election (Sec. 1). 

• Requires a three-fifths majority vote for the adoption of the local tax cap or the SAU fixed administrative cap (Sec. 1). 

• Limits the property taxes raised for a school district, if the cap is adopted, to the prior year’s amount adjusted for inflation and net new taxable property growth (Sec. 1). 

• Limits the SAU central office administrative budget to 6 percent of the combined appropriations of the school districts within that SAU, excluding bonded capital costs (Sec. 1). 

• Defines “SAU central office administrative budgets” as expenditures for general management, including superintendent services, human resources, finance, legal services, and district-level directors who do not provide direct classroom instruction for more than 50 percent of their work time (Sec. 1). 

• Exempts school-based administrative staff, classroom instruction, special education services, transportation, and food services from being classified as central office administrative expenses (Sec. 1). 

• Exempts bonded capital costs, such as principal and interest on debt for real property acquisition or construction, from the calculations of both caps (Sec. 1). 

• Authorizes the legislative body to override the fixed SAU administrative cap through a supermajority vote (Sec. 1). 

• Requires the commissioner of the department of revenue administration to reduce district or SAU appropriations if they exceed adopted caps without a valid override (Sec. 1). 

• Requires the department of revenue administration to adopt rules and create forms necessary to implement the tax and administrative caps (Sec. 1-2). 

• Specifies that this act takes effect November 1, 2026 (Sec. 3).

Full Bill Text

Vote Smart's Synopsis:

Vote to adopt a conference report that establishes a ballot measure to limit school district local taxes in New Hampshire.

Highlights:

• Requires a question for a local tax cap and a fixed cap on school administrative unit (SAU) central office office budgets to appear on the ballot for the November, 2026 state general election (Sec. 1). 

• Requires a three-fifths majority vote for the adoption of the local tax cap or the SAU fixed administrative cap (Sec. 1). 

• Limits the property taxes raised for a school district, if the cap is adopted, to the prior year’s amount adjusted for inflation and net new taxable property growth (Sec. 1). 

• Limits the SAU central office administrative budget to 6 percent of the combined appropriations of the school districts within that SAU, excluding bonded capital costs (Sec. 1). 

• Defines “SAU central office administrative budgets” as expenditures for general management, including superintendent services, human resources, finance, legal services, and district-level directors who do not provide direct classroom instruction for more than 50 percent of their work time (Sec. 1). 

• Exempts school-based administrative staff, classroom instruction, special education services, transportation, and food services from being classified as central office administrative expenses (Sec. 1). 

• Exempts bonded capital costs, such as principal and interest on debt for real property acquisition or construction, from the calculations of both caps (Sec. 1). 

• Authorizes the legislative body to override the fixed SAU administrative cap through a supermajority vote (Sec. 1). 

• Requires the commissioner of the department of revenue administration to reduce district or SAU appropriations if they exceed adopted caps without a valid override (Sec. 1). 

• Requires the department of revenue administration to adopt rules and create forms necessary to implement the tax and administrative caps (Sec. 1-2). 

• Specifies that this act takes effect November 1, 2026 (Sec. 3).

Full Bill Text