SB 651 would legalize cannabis use for adults 21 and older in New Hampshire, requiring businesses to obtain licenses and follow regulations similar to alcohol, including age verification for purchases, product testing, and labeling. It establishes a new cannabis tax fund, with revenue from sales allocated to support substance abuse prevention, treatment, and education programs through a dedicated fund managed by the Department of Health and Human Services. These programs would cover evidence-based initiatives, mental health services for dual-diagnosis cases, and public education campaigns about cannabis risks for both youth and adults. The bill mandates annual reporting on fund usage and ensures tax revenue directly supports state efforts to address substance misuse.
HB 417 would reduce the communications services tax rate from 7% to 4% for the 2026 tax year and completely repeal the tax effective July 1, 2027. This bill directly affects businesses providing communications services in New Hampshire, including phone, internet, and cable services. The legislation removes the tax from state law by repealing RSA 82-A and amending other sections to eliminate references to the communications services tax. Based on 2024 revenue data of $30.6 million, the repeal is expected to reduce annual state revenue by approximately $30.6 million starting in fiscal year 2027. The Department of Revenue Administration will need to update tax forms and systems but anticipates no additional administrative costs.
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.
SB 63 changes how the Division of Travel and Tourism in New Hampshire is funded by adjusting the calculation of meals and rooms tax revenue. Currently, the division receives 3.15% of the "net income" from this tax, which excludes transfers to the Municipal Revenue Fund. The bill adds back that transfer amount to the calculation, increasing the funding base. Based on 2024 data, this would raise annual funding from $10.2 million to $14.3 million (a $4.1 million increase). The change applies to future budgets starting with the 2028-2029 fiscal year.
This bill requires all state education property tax revenue to be deposited directly into the Education Trust Fund, replacing previous municipal handling. It expands eligibility for property tax relief by raising income thresholds to $65,000 annually for single homeowners and $77,500 for married households or heads of household. The bill mandates annual inflation adjustments to all relief amounts and establishes a committee to study extending relief to renters and improving the program’s data and design. It takes effect July 1, 2025, applying to tax periods ending after April 1, 2026.
HB 675 increases the statewide education property tax revenue cap to $773 million for 2025 and requires municipalities to remit excess tax collections to the state education trust fund. It limits school district spending growth on non-facilities expenses by tying annual appropriations to the 3-year average Consumer Price Index (CPI), with stricter rules after 2027. The bill also raises the base per-pupil adequacy cost from $4,100 to $7,356 and mandates annual reporting of district spending to the Department of Education. These changes directly affect school districts and municipalities managing education funding, effective July 1, 2025. (Note: The bill’s title mentioning "central office expenses" does not align with the actual provisions; this summary reflects the actual tax and spending mechanisms described in the bill text.)
SB 83 establishes a fund to reimburse municipalities for property tax revenue lost due to exemptions for elderly, disabled, blind, and deaf residents. The bill authorizes video lottery terminals (VLTs) at facilities licensed for charitable gaming, requiring them to operate with an 88% minimum payback rate and distributing 40% of VLT revenue to charitable organizations (35%), a special fund (25%), the reimbursement fund (25%), and retirement benefits (50%). It also creates a voluntary statewide self-exclusion database to help people with problem gambling avoid gambling venues. The bill renames the state lottery commission to the "New Hampshire lottery and gaming commission" and sets a July 1, 2025 effective date.
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.
HB 1579 establishes a legislative committee to study potential revenue sources for increasing education funding in New Hampshire. The committee, composed of 10 members (four from each legislative party with revenue expertise, plus two Senate appointees), will analyze options like new taxes or modified existing ones to boost education aid while reducing property taxes. It must examine factors including revenue reliability, implementation costs, economic impacts on businesses, and effects on different income groups and housing types. The committee is prohibited from recommending specific options and must report findings by November 1, 2026, to state leaders. This bill creates a study process only, with no immediate policy changes or funding allocations.
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.
