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HB 374 · 2025 · House · Municipal and County Government Committee

Local tax cap and budget procedures

AI-generated

(New Title) relative to local tax cap and budget laws.

Clarifies procedures for adopting a local tax and budget cap and clarifies required warrant language for adopting such a cap and budget.AI-generated

Status

Signed into law · July 22, 2025
  1. ✓Introduced
  2. ✓House
  3. ✓Senate
  4. ✓Governor
  5. ✓Law

Analysis

This bill clarifies references to the procedure for adopting a local tax and budget cap and clarifies warrant language for adopting such a cap and budget.

From the bill's official ANALYSIS section.

In the bill's words

Quoted verbatim from the bill as enacted. Passages chosen from the operative text.Computed by this site

“The first year after the budget cap is adopted, the current per pupil cost shall be the per pupil cost adopted in the warrant article per RSA 32:5-f, IV.”
RSA 32:5-e
“In subsequent years, the current per pupil cost shall be the previous year's current per pupil cost times (1+IFP), where IFP is the previous year's IF.”
RSA 32:5-e
“The annual increase for inflation (IF) shall be either? a fixed percentage,?annual percentage change of an inflation index published by the U.S.”
RSA 32:5-e
“Only votes in the affirmative or negative shall be included in the calculation of the 3/5 majority or the supermajority as determined under a charter pursuant to RSA 49-D.”
RSA 32:5-e

Official record

Bill page — docket & status

gc.nh.gov · the authoritative source

Sponsors

Rep. Diane PauerRPrimeChair· Municipal and County Government
  • Rep. Tom MannionRAssistant Majority Whip
  • Rep. Dan McGuireRVice Chair· Finance
  • Sen. Kevin AvardRDeputy Majority Whip
  • Sen. Keith MurphyRDeputy President Pro Tempore
  • Sen. Victoria SullivanRVice Chair· Education

Also: Rep. Scott BryerR, Rep. Jess EdwardsR, Rep. Jim KofaltR, Rep. Richard LascellesR, Rep. Tim MannionR, Rep. Donald McFarlaneR, Sen. Tim McGoughR

Public testimony

117 signed in online · 10 wrote testimony

16% support84% oppose0% neutral

In their wordsVerbatim, exactly as submitted

“Linking tax increases to inflation is key to preventing runaway spending.”
— Russell Hodgkins, Amherstsupports
“In coordination with HB200, it is important to clarify needed statutory language local municipalities must use to establish a tax cap.…”
— Nancy Louth, Hamptonsupports
“Granite State Taxpayers supports efforts and legislation to promote awareness of the financial impact on taxpayers of spending and taxing options, to institute and defend tax cap legislation, and promote better public awareness of the impacts of proposed projects and ballot choices.…”
— Ray Chadwick, BEDFORDsupports
“I oppose this bill because I oppose the local tax cap to begin with.”
— Julie Laracy, Conwayopposes
“This will only make NH even more unaffordable to live in. This is just a stealth move to push through in a law that would be WILDLY UNPOPULAR with your constituents. No super majorities! And stop trying to take all our money!”
— Debra Green, Greenvilleopposes
“This would negatively impact consumers and small businesses. I strongly oppose this bill.”
— Patricia Martin, Rindgeopposes

Verbatim excerpts of submitted testimony, quoted from the testimony tool.

Read the testimony · as of Aug 12, 2026

Votes

yeanay
Starting text: Bill as introduced

Hearings and debates

  • Feb 27, 2025Public hearingHouse Municipal and County Government44:22–56:2612m 4slocated in the stream transcriptPublic Hearing
  • Mar 10, 2025Public hearingHouse Municipal and County Government1:01:27–1:04:593m 32slocated in the stream transcriptMajority Committee Report: Ought to Pass with Amendment # 2025-0572h — roll call; Executive Session
  • Mar 27, 2025Floor debateHouse floor7:23:55–7:34:5410m 59slocated in the stream transcriptOught to Pass with Amendment 2025-0572h — adopted, roll call 195-159; Amendment # 2025-0572h (NT) — adopted, voice vote
  • Apr 22, 2025Public hearingSenate Election Law and Municipal Affairs1:43:29–1:45:542m 25slocated in the stream transcriptHearing
  • May 8, 2025Floor debateSenate floorWatchnot located in the transcript — opens the full streamCommittee Report: Ought to Pass with Amendment # 2025-1835s; Ought to Pass with Amendment #2025-1835s — adopted, voice vote; Committee Amendment # 2025-1835s — adopted, voice vote
  • Jun 12, 2025Floor debateHouse floor2:16:00–2:17:281m 28slocated in the stream transcriptHouse Concurs with Senate Amendment 2025-1835s (Rep. Pauer) — adopted, voice vote
  • Jun 26, 2025Floor debateSenate floorWatchnot located in the transcript — opens the full streamEnrolled Adopted — voice vote

Timestamps locate where this bill is taken up in the chamber's YouTube stream.

Legislative history

  1. Jan 8, 2025HouseIntroduced 01/08/2025 and referred to Municipal and County Government HJ 2 P. 17
  2. Feb 27, 2025HousePublic Hearing: 02/27/2025 09:40 am LOB 301-303
  3. Mar 10, 2025HouseExecutive Session: 03/10/2025 09:30 am LOB 301-303
  4. Mar 10, 2025HouseMajority : Ought to Pass with Amendment # 2025-0572h 03/10/2025 (Vote 10-8; RC) HC 17 P. 64
  5. Mar 19, 2025HouseMinority : Inexpedient to Legislate
  6. Mar 27, 2025HouseAmendment # 2025-0572h (NT): AA VV 03/27/2025 HJ 11 P. 85
  7. Mar 27, 2025HouseOught to Pass with Amendment 2025-0572h: MA RC 195-159 03/27/2025 HJ 11 P. 87
  8. Mar 27, 2025SenIntroduced 03/27/2025 and Referred to Election Law and Municipal Affairs; SJ 10
  9. Apr 22, 2025SenHearing: 04/22/2025, Room 103, LOB, 10:30 am; SC 18
  10. May 8, 2025Sen: Ought to Pass with Amendment # 2025-1835s, 05/08/2025; Vote 4-1; CC; SC 20
  11. May 8, 2025SenCommittee Amendment # 2025-1835s, AA, VV; 05/08/2025; SJ 12
  12. May 8, 2025SenOught to Pass with Amendment #2025-1835s, MA, VV; OT3rdg; 05/08/2025; SJ 12
  13. Jun 12, 2025HouseHouse Concurs with Senate Amendment 2025-1835s (Rep. Pauer): MA VV 06/12/2025 HJ 17 P. 14
  14. Jun 26, 2025SenEnrolled Adopted, VV, (In recess 06/26/2025); SJ 18
  15. Jun 26, 2025HouseEnrolled (in recess of) 06/26/2025 HJ 18 P. 59
  16. Jul 15, 2025HouseSigned by Governor Ayotte 07/15/2025; Chapter 183; eff.09/13/2025 HJ 18

Coverage

No reporting linked yet.

Background reading

Evergreen reading on the policy area — spanning perspectives — not coverage of this specific bill.

  • Taking the Mystery Out of Fund BalanceExplainer

    New Hampshire Municipal Association — Defines unassigned fund balance and explains how New Hampshire municipalities and districts account for year-end surpluses.AI-generated

  • Municipal Budgeting: Tackling the UnexpectedExplainer

    New Hampshire Municipal Association — Describes how reserves and fund balances function as a buffer against revenue shortfalls and emergency costs.AI-generated

  • HB 1610 (2026)NH context

    Citizens Count — A nonpartisan summary of the bill changing how New Hampshire school districts may retain year-end unassigned funds.AI-generated

  • ConVal School Board takes action against potential impact of HB 1610District flexibility

    Monadnock Ledger-Transcript — Reports on a New Hampshire district's concerns that tighter retention limits reduce budgeting flexibility.AI-generated

  • $16M back to voters from unassigned fund balanceTaxpayer return

    Eagle Tribune — Illustrates the case for returning accumulated surpluses to taxpayers rather than retaining them in district accounts.AI-generated

Documents (PDF)

Bill text & amendments link direct to gc.nh.gov; committee reports stream from the state record.