New Hampshire senators and representatives reached an agreement in a committee of conference on Wednesday on property tax cap legislation.

Under the deal, voters would have a chance in the next two November general elections, this year and in 2028, to put a limit on how much local school districts can raise through taxes.

The cap would be set at the prior year’s level, adjusted for inflation, and the percentage increase in a municipality’s taxable property value attributable to new construction. Costs for bonded capital projects would be excluded from the cap.

Voters would also be asked whether the administrative office budget for their school administrative unit should be limited to 6 percent of the combined appropriations of the school districts comprising the SAU.

A three-fifths majority vote would be required for passage of the tax cap and the limit on administrative spending, both of which would be part of a long question placed before voters. 

Deals reached in committees of conference often win support when they come up for a vote in the House and Senate before going to the governor’s desk. The office of Republican Gov. Kelly Ayotte did not immediately return a request for comment on the underlying legislation, House Bill 1300.

The House approved the Republican-backed measure on March 11, 177-160. The Senate approved it in a voice vote on May 14.

The House’s version called for elections every two years, while the Senate’s version called for a single election this November.

Rep. Ross Berry, R-Weare, the chairman of the committee of conference, suggested elections this November and in November 2028 as a compromise. Sen. Rebecca Perkins Kwoka, D-Portsmouth, was the only committee member in opposition. 

She said there is widespread agreement that something needs to be done to bring down New Hampshire’s property tax rates, which are among the highest in the nation.

“However, this solution is essentially ideological. It’s not practical in nature,” she said.

Democratic leaders frequently assert that a lack of state funding for public schools drives property tax increases, while many Republican lawmakers blame high taxes on overspending at the local level. 

New Hampshire has no overall income or sales tax, and so depends mainly on property tax revenue to support public education.

School spending is now decided in town elections in March.

Perkins Kwoka said HB 1300 would create practical difficulties because warrant articles for those elections are typically written up well before the November general election.

She said the bill “is another way we are not respecting local control.”

Proponents of the bill say local elections typically have very low turnouts, while more people come to the polls at the general election.

Sen. Timothy Lang, R-Sanbornton, said this greater turnout would allow for more property owners to have a say on the taxes they pay.

“I think that it’s clear the number one, number two and number three thing that voters are complaining about is their local property taxes,” he said. “As we know, local property taxes are the direct result of spending.”

He said HB 1300 would put “voters more in control of spending.”

Lawmakers have until June 4 to act on agreements reached in committees of conference.

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