HB1802: relative to the statewide education property tax.

HB 1802-FN-LOCAL - AS INTRODUCED

2018 SESSION

18-2215

05/04

HOUSE BILL 1802-FN-LOCAL

AN ACT relative to the statewide education property tax.

SPONSORS: Rep. Henle, Merr. 12

COMMITTEE: Ways and Means

ANALYSIS

This bill requires municipalities to remit any excess statewide education property tax to the state for deposit in the general fund.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2215

05/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eighteen

AN ACT relative to the statewide education property tax.

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

1 New Sections; Adequate Education; Excess Statewide Education Property Tax Payment. Amend RSA 198 by inserting after section 47 the following new sections:

198:47-a Excess Statewide Education Property Tax Payment.

I. Any excess statewide education property tax shall be remitted to the department of revenue administration on or before March 15 of the tax year in which the excess occurs.

II. The commissioner of the department of revenue administration shall collect from the municipality the excess tax and pay the excess tax over to the state treasurer for deposit in the general fund.

III. The amount of such excess to be remitted shall not include any income derived from the investment of funds by the municipal treasurers under RSA 41:29 and RSA 48:16. Any funds remaining after full payment of the excess tax required in paragraph I shall become available for unrestricted use by the municipality.

198:47-b Forms. The commissioner shall approve and provide forms relative to the reporting and remitting of excess statewide education property tax by the municipalities.

2 New Paragraph; Determination of Education Grants and Excess Statewide Education Tax. Amend RSA 198:41 by inserting after paragraph II the following new paragraph:

II-a. Notwithstanding paragraphs I and II, any amount collected pursuant to RSA 76:8 in excess of the cost of providing an opportunity for adequate education under RSA 198:40-a shall be excess statewide education property tax to be remitted under RSA 198:47-a.

3 Assessment of Education Tax; Commissioner's Warrant. Amend RSA 76:8, II to read as follows:

II. The commissioner shall issue a warrant under the commissioner's hand and official seal for the amount computed in paragraph I to the selectmen or assessors of each municipality by December 15 directing them to assess such sum and pay it to the municipality for the use of the school district or districts and, if there is an excess statewide education property tax payment due pursuant to RSA 198:47-a, directing them to assess the amount of the excess payment and pay it to the department of revenue administration for deposit in the general fund. Such sums shall be assessed at such times as may be prescribed for other taxes assessed by such selectmen or assessors of the municipality.

4 Effective Date. This act shall take effect July 1, 2018.

LBAO

18-2215

Revised 1/12/18

HB 1802-FN-LOCAL- FISCAL NOTE

AS INTRODUCED

AN ACT relative to the statewide education property tax.

FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2019

FY 2020

FY 2021

FY 2022

Appropriation

$0

$0

$0

$0

Revenue

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Expenditures

$0

$0

$0

$0

Funding Source:

[ X ] General [ ] Education [ ] Highway [ ] Other

LOCAL:

Revenue

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Expenditures

$0

$0

$0

$0

METHODOLOGY:

This bill requires municipalities to remit any excess Statewide Education Property Tax (SWEPT) to the State for deposit to the State General Fund. The excess required to be remitted to the State is the difference between the SWEPT raised and the municipality’s calculated cost of providing an opportunity for adequate education (“adequacy”). Currently, if a municipality’s SWEPT is greater than its adequacy cost, it goes to the school district.

While the precise impact of this bill on state and local revenue is unknown as student and tax data is not yet available for future periods, based on FY 2019 preliminary data, this bill would result in a $29,698,848 increase to State General Fund revenue and a corresponding decrease to local revenue. The table below presents only the affected municipalities using FY 2019 preliminary data:

FY 2019 Preliminary Data

"Excess"

Cost of Providing an Opportunity for Adequate Education

Statewide Education Property Tax (SWEPT)

State Total

$745,449,462

$363,099,673

$29,698,848

Alton

$2,929,319

$3,580,236

$650,917

Atkinson & Gilmanton Academy Grant

$0

$1,751

$1,751

Bartlett

$1,100,878

$2,221,528

$1,120,650

Bridgewater

$409,625

$751,109

$341,484

Cambridge

$0

$21,882

$21,882

Carroll

$268,978

$765,882

$496,904

Center Harbor

$446,312

$912,353

$466,041

Chandler's Purchase

$0

$98

$98

Crawford's Purchase

$0

$481

$481

Dix's Grant

$0

$1,954

$1,954

Dixville

$7,272

$20,938

$13,666

Easton

$53,523

$145,098

$91,575

Eaton

$81,992

$225,864

$143,872

Errol

$61,535

$181,346

$119,811

Erving's Grant

$0

$89

$89

Franconia

$532,624

$616,897

$84,273

Freedom

$450,243

$1,066,940

$616,697

Green's Grant

$0

$7,987

$7,987

Groton

$232,176

$296,180

$64,004

Hale's Location

$6,836

$160,722

$153,886

Hampton

$6,496,133

$7,158,182

$662,049

Hanover

$4,422,487

$5,345,839

$923,352

Harrisville

$292,752

$414,036

$121,284

Hart's Location

$3,636

$34,674

$31,038

Hebron

$192,668

$568,662

$375,994

Holderness

$996,225

$1,597,497

$601,272

Jackson

$319,698

$905,960

$586,262

Lincoln

$585,266

$1,813,982

$1,228,716

Livermore

$0

$291

$291

Meredith

$3,286,946

$4,252,522

$965,576

Millsfield

$3,636

$20,693

$17,057

Moultonborough

$2,063,177

$6,415,983

$4,352,806

New Castle

$342,769

$1,603,889

$1,261,120

New London

$1,161,073

$2,555,036

$1,393,963

Newbury

$992,428

$1,580,159

$587,731

Newington

$253,060

$1,300,562

$1,047,502

North Hampton

$1,999,416

$2,582,595

$583,179

Odell

$0

$6,280

$6,280

Pinkham's Grant

$0

$14,358

$14,358

Pittsburg

$266,799

$586,357

$319,558

Portsmouth

$9,040,785

$11,904,407

$2,863,622

Randolph

$73,722

$143,597

$69,875

Rye

$2,281,207

$4,715,140

$2,433,933

Sandwich

$530,758

$875,126

$344,368

Sargent's Purchase

$0

$5,037

$5,037

Second College Grant

$0

$2,957

$2,957

Success

$0

$31,721

$31,721

Sugar Hill

$267,835

$304,606

$36,771

Sunapee

$1,520,069

$2,744,111

$1,224,042

Thompson and Meserve's Purchase

$0

$14,077

$14,077

Tuftonboro

$1,132,208

$2,182,014

$1,049,806

Washington

$450,977

$465,950

$14,973

Waterville Valley

$140,061

$764,494

$624,433

Wentworth's Location

$0

$18,312

$18,312

Wolfeboro

$2,975,229

$4,462,742

$1,487,513

There will be no increased administration costs to implement the provisions of this bill for either the Department of Education or Department of Revenue Administration.

AGENCIES CONTACTED:

Department of Education and Department of Revenue Administration