David Preece

Dear Chair and Members of the House Ways and Means Committee, I write in strong support of HB 1787-FN, an important and long-overdue reform of New Hampshire’s statewide education property tax system. HB 1787 addresses one of the most persistent inequities in our tax structure: the mismatch between a uniform statewide tax and a non-uniform distribution of its revenues. By requiring that statewide education property tax revenues be collected and remitted to the state treasurer for deposit into the Education Trust Fund, this bill finally aligns practice with principle. A statewide tax should function as a statewide tax — transparent, uniform, and used for statewide educational purposes. This reform advances three critical goals. First, it restores fairness and constitutional integrity. For years, the statewide education property tax has been levied uniformly but retained locally, producing vastly different outcomes depending on property wealth. HB 1787 corrects this structural flaw by ensuring that revenues flow through the Education Trust Fund and are distributed through the education grant system established in RSA 198:41. This approach better reflects New Hampshire’s constitutional obligation to fund an adequate education and reduces disparities driven by local valuation rather than student need. Second, it provides meaningful and targeted property tax relief. HB 1787 significantly strengthens the low- and moderate-income homeowners property tax relief program by modernizing income thresholds, indexing them to inflation, and ensuring that eligible homeowners are clearly informed of available relief on their tax bills. These changes recognize an undeniable reality: rising property values and tax bills are pushing fixed- and modest-income residents out of their homes. This bill does not weaken local control — it protects homeowners who are least able to absorb these increases. Third, it improves transparency and accountability. By routing statewide education tax revenues through the Education Trust Fund and clearly identifying their use for education grants, tax billing costs, and homeowner relief, HB 1787 makes the system understandable to taxpayers. Residents deserve to know where their tax dollars go and how those dollars are used. This bill delivers that clarity. The establishment of a bipartisan study committee is also a strength of HB 1787. It acknowledges that additional work remains — particularly in examining relief for renters who indirectly pay education property taxes and exploring deferral options for taxpayers facing temporary hardship. That is thoughtful, responsible policymaking. At a time when property taxes are the number one concern raised by constituents across New Hampshire, HB 1787 offers a principled solution that improves equity without shifting costs onto municipalities or undermining local decision-making. It strengthens our education funding system, protects vulnerable homeowners, and restores public confidence in how we raise and distribute education dollars. For these reasons, I respectfully urge the House Ways and Means Committee to recommend HB 1787-FN as Ought to Pass. Thank you for your consideration and for your continued work on behalf of New Hampshire taxpayers and students. Respectfully submitted, David John Preece State Representative, Hillsborough District 17