Section 32:5-b - Local Tax Cap Upon adoption under RSA 32:5-c, the following shall apply:
I. In a town or district that has adopted this section, the estimated amount of local taxes to be raised for the fiscal year, shall include the operating budget and all other warrant articles with a tax impact certified by the governing body or the budget committee and posted on the warrant for the annual meeting pursuant to RSA 32:5. The estimated amount of taxes to be raised for the fiscal year shall not exceed the local taxes raised for the prior year, as shown on the same budget and adjusted as provided in paragraph I-a or I-b, by more than the tax cap authorized when this section was adopted.I-a. If the local taxes raised for the prior year were reduced by any fund balance brought forward from previous years, the amount of such reduction shall be added back and included in the amount to which the tax cap is applied under paragraph I.I-b.(a) In a town or district that has adopted this paragraph, a tax cap limiting the base amount to be raised by property taxes to last year's base may be adjusted to account for inflation and change in population for towns or village districts, or attendance for school districts, according to the following formula: this year's base = (last year's base) x (1 + CPI) x (this year's population or attendance / last year's population or attendance).(b) In this paragraph: (1) "Attendance" shall mean the average daily membership in residence (ADMR) of the school district as of October 1 for each year as reported to the department of education.(2) "Base amount" or "base" shall mean the local taxes raised for the prior year. (3) The increase for inflation, or CPI (consumer price index) in the formula above, shall be an annual inflation index published by the U.S. Bureau of Labor Statistics as of January 1 or the annual Municipal Cost Index (MCI) published by American City and County as of January 1. (4) Population shall mean the population figures calculated by the department of business and economic affairs, office of planning and development pursuant to RSA 78-A:25, III. II. The tax cap shall be either a fixed dollar amount, a fixed percentage, or a multiplication factor applied to the amount of local taxes raised by the town or district for the prior fiscal year as reported to the department of revenue administration, subject to adjustment as provided in paragraph I-a or paragraph I-b.III. The legislative body may override the cap by the usual procedures applicable to annual meetings and deliberative sessions of the legislative body. The provisions of this section shall not limit the legislative body's authority to increase or decrease the amount of any appropriation or the total amount of all appropriations.Amended by 2024, 353:1, eff. 10/1/2024, app. to local tax caps adopted prior to 10/1/2024 and shall not require local amendment or re-adoption by the town or district.Amended by 2024, 106:1, eff. 9/1/2024, app. to local tax caps and shall not require local amendment or re-adoption by the town or district.Amended by 2013 , 58: 1, eff. 8/5/2013.Added by 2011 , 234: 6, eff. 7/5/2011. 2011, 234 : 6 , eff. July 5, 2011. 2013, 58 : 1 , eff. Aug. 5, 2013.