New Hampshire HB 1505: requiring municipalities, towns, and cities to submit documentation to the department of revenue administration proving they are in compliance with local budget and tax caps.

Bill Text

HB 1505-FN - AS AMENDED BY THE HOUSE

12Feb2026... 0233h

2026 SESSION

 26-2503

 07/06

HOUSE BILL 1505-FN

AN ACT requiring municipalities, towns, and cities to submit documentation to the department of revenue administration proving they are in compliance with local budget and tax caps.

SPONSORS: Rep. Pauer, Hills. 36; Rep. Ammon, Hills. 42; Rep. Girard, Sull. 6; Rep. Granger, Straf. 2; Rep. Kofalt, Hills. 32; Rep. Lascelles, Hills. 14; Rep. McFarlane, Graf. 18; Rep. D. McGuire, Merr. 14; Rep. Sweeney, Rock. 25; Rep. Vose, Rock. 5; Sen. Avard, Dist 12; Sen. Gannon, Dist 23; Sen. Murphy, Dist 16

COMMITTEE: Municipal and County Government

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ANALYSIS

 This bill requires municipalities, towns, and cities to submit documentation to the department of revenue administration proving they are in compliance with local budget and tax caps.

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Explanation: Matter added to current law appears in bold italics.

 Matter removed from current law appears [in brackets and struckthrough.]

 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

12Feb2026... 0233h 26-2503

 07/06

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty-Six

AN ACT requiring municipalities, towns, and cities to submit documentation to the department of revenue administration proving they are in compliance with local budget and tax caps.

Be it Enacted by the Senate and House of Representatives in General Court convened:

 1 New Paragraphs; The State and Its Government; Property Tax Rates; Reports Required. Amend RSA 21-J:34 by inserting after paragraph II the following new paragraphs: 

 II-a. For political subdivisions that have adopted a local tax cap under RSA 32:5-b, the governing body of the political subdivision shall forward the commissioner’s form for compliance with the adopted local tax cap. The form shall include the computation of the local tax cap for that year, proposed appropriations by the governing body and budget committee and estimated revenues going into the annual meeting showing estimated amount of local taxes to be raised, appropriations voted by the annual meeting of the legislative body, and the counts of any ballot votes taken to override the local tax cap. 

 II-b. For political subdivisions that have adopted a school district budget cap under RSA 32:5-e, or a town budget cap under RSA 32:5-g, the governing body of the political subdivision shall forward the commissioner’s form for compliance with the adopted budget cap. The form shall include the computation of the budget cap for that year, proposed appropriations by the governing body and budget committee, appropriations voted by the meeting of the legislative body, and the counts of any ballot votes taken to override the budget cap. 

 2 Towns, Cities, Village Districts, and Unincorporated Places; Preparation of Budgets; Local Tax Cap. Amend RSA 32:5-b, III(a) to read as follows: 

 (a) When using the official ballot form of meeting under RSA 40:13, if the warrant article for the operating budget results in appropriations exceeding the tax cap under this section and receives less than 3/5 majority "yes" vote, the adopted operating budget shall be reduced [by appropriations already raised] to remain compliant with the tax cap under this section, including reductions for any appropriations already raised. In this paragraph, "appropriations already raised" shall include approved appropriations in warrant articles appearing on ballot before the warrant article in question. 

 3 New Subparagraph; Towns, Cities, Village Districts, and Unincorporated Places; Preparation of Budgets; Local Tax Cap. Amend RSA 32:5-b, III by inserting after subparagraph (b) the following new subparagraph: 

 (c) For the purposes of determining when the amount of local taxes raised by the town or district exceed the local tax cap under this section, the amount of appropriations of the operating budget counting towards the tax cap shall be reduced by the estimated revenues reported to the department of revenue administration in the posted budget pursuant to RSA 32:5. In addition, the amount of appropriations in any warrant article that also includes anticipated revenue from a state or federal agency shall be reduced by the anticipated revenues for purposes of determining when the amount of local taxes raised by the town or district exceed the tax cap under this section.

 4 Towns, Cities, Village Districts, and Unincorporated Places; Preparation of Budgets; School District Budget Cap. Amend RSA 32:5-e, I to read as follows: 

 I. In a school district that has adopted this section, the total amount raised and appropriated for the fiscal year, including the operating budget and all other warrant articles with a tax imp