HB 649 eliminates the requirement for physical safety inspections and on-board diagnostic tests for all private passenger vehicles in New Hampshire, effective January 1, 2026. The bill also repeals the Motor Vehicle Air Pollution Abatement Fund, which previously received $0.25 from each vehicle inspection fee. This change will reduce state revenue by approximately $1.7 million in fiscal year 2026, with annual decreases of $3.4 million thereafter, and will impact municipal highway fund block grants that receive 12% of vehicle inspection revenue. The bill affects all passenger vehicle owners who would have been required to undergo inspections and alters the funding structure for vehicle safety and environmental programs.
HB 155 reduces New Hampshire's business enterprise tax (BET) rate from 0.55% to 0.50% for tax years ending on or after December 31, 2026. This directly affects businesses that pay the BET, calculated on their taxable enterprise value. The rate change takes effect July 1, 2025, applying permanently to all future tax periods meeting the end-date requirement. The bill does not alter other tax provisions but will decrease state revenue from this tax, with estimated impacts of $4.3 million in fiscal year 2026.
SB 601 changes how New Hampshire funds pension costs for public employees in school districts and municipal employers. Beginning July 1, 2026, the state will pay 7.5% of pension contributions for group I teachers (school districts) and group II members (municipal employees), shifting the remaining 92.5% to local employers. The state’s share will be transferred from the education trust fund to the retirement system quarterly, treated as part of general revenue. This affects school districts and municipalities that employ teachers or municipal staff covered under the state retirement system. The bill modifies existing contribution rules without new funding or positions.
HB 1176 removes New Hampshire's requirement for vehicles to display a front license plate, affecting all registered vehicles in the state. The bill amends RSA 261:75, II to eliminate the language requiring plates to be displayed "on the rear of the vehicle" (previously mandating both front and rear plates). This change directly impacts approximately 194,000 vehicles registered annually with new plate types, reducing state revenue by about $776,000 and expenditures by $679,000 yearly based on current plate production costs. The law takes effect 60 days after passage.
HB 1380, the "Replacement Value Property Assessment Act," changes how property taxes are calculated in New Hampshire by requiring assessments to be based on replacement or cost-based value (not current market value) for both buildings and land. It affects all property owners and municipalities, implementing a phased transition: 2026 assessments use a 50/50 blend of old and new methods, shifting to 25% market value/75% cost-based value in 2027, and fully adopting cost-based assessments starting in 2028. The bill includes revenue neutrality rules (municipalities cannot raise total tax revenue solely from this change) and establishes appeal processes for property owners. It takes effect July 1, 2026, with annual reporting on assessment impacts required starting in 2028.
HB 1144 increases the excavation tax rate from $0.02 to $0.04 per cubic yard of earth excavated. This change directly affects property owners who excavate earth, as defined in state law, requiring them to pay double the current tax rate on excavation activities. The bill takes effect July 1, 2027, with no immediate fiscal impact for local governments until fiscal year 2030. Based on 2024 excavation volumes (12.1 million cubic yards statewide), this rate change would approximately double annual tax revenue - adding an estimated $242,000 statewide if applied to similar excavation volumes.
HB 1194 allows New Hampshire insurance companies to use credits for assessments paid to the Life and Health Insurance Guaranty Association (NHLHIGA) to reduce their state tax liability. Specifically, insurers can offset up to 20% of eligible assessments annually for five years, but this rate drops to 10% if total credits exceed $10 million in a single year. The bill prohibits carrying forward unused credits and requires insurers to repay any refunds received from the NHLHIGA to the state. This policy directly affects insurers participating in the NHLHIGA, which protects policyholders if an insurer becomes insolvent. The change limits potential state revenue loss during years with large NHLHIGA assessments.
This bill eliminates existing premiums for New Hampshire's Medicaid programs (Granite Advantage for adults and CHIP for children) and limits any cost-sharing fees under expanded Medicaid to $5 per service. It repeals current premium requirements that generated approximately $16 million annually in state revenue, requiring a $16 million appropriation in FY2027 to offset this loss. The changes take effect July 1, 2026, with the $5 cost-sharing cap applying starting October 1, 2028. The bill directly affects current Medicaid recipients by removing premium payments and modifies state budgeting for the Medicaid program.
