HB 632-FN-A-LOCAL - AS INTRODUCED
2003 SESSION
10/01
HOUSE BILL 632-FN-A-LOCAL
This bill limits the excess education property tax liability of a town to an amount which is no more than 10 percent of the total budget.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03-0402
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Three
AN ACT limiting the collection by the state of excess education property tax payments.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Excess Education Property Tax Payment; Limitation Added. Amend RSA 198:46, I to read as follows:
I. Municipalities for which the education property tax exceeds the amount necessary to fund an adequate education determined by RSA 198:40 shall assess and remit [such excess] an amount to the department of revenue administration on or before March 15 of the tax year in which the excess occurs. The amount remitted, which shall be determined by the commissioner of revenue administration, shall not exceed 10 percent of the total amount of the following:
(a) The municipality's budget for municipal operations;
(b) The municipality's share of county costs assessed to the municipality; and
(c) The municipality's total school district operating budget as approved for the pervious fiscal year;
provided that no capital expenditures, debt service payments on capital improvement bonds, or payments made to capital improvement reserve funds shall be included in subparagraphs (a), (b), or (c).
2 Effective Date. This act shall take effect April 1, 2003.
LBAO
03-0402
Revised 3/4/03
HB 632 FISCAL NOTE
AN ACT limiting the collection by the state of excess education property tax payments.
FISCAL IMPACT:
The Department of Revenue Administration indicates this bill will have an indeterminable fiscal impact on state education trust fund revenue in FY 2004 and each year thereafter. There will be no fiscal impact on county and local revenue or state, county and local expenditures.
METHODOLOGY:
The Department states this bill cannot be administered as written because the bill does not specify who will determine the 10% measure and the basis of the calculation. The fiscal impact, however, is limited to the excess property tax, which will be $42.2 million in FY 2004.