Taxes & Budget

New Hampshire Question 2 would limit local school tax increases

Question 2 on New Hampshire’s Nov. 3 ballot would tie local school property-tax increases to inflation and new construction, with a separate cap on school administrative costs.

New Hampshire Question 2 would limit local school tax increases
©Illustration AI Harold Pettengill / Granite Ledger

New Hampshire voters will decide Tuesday whether to impose limits on the amount local school districts can raise through property taxes. Question 2 would apply to every public school district and would remain in effect for two years if approved.

The measure would limit a district’s school property-tax increase to the rate of inflation plus an amount tied to new construction. It also would limit School Administrative Unit costs to 6% of a district’s total school budget, with capital bond costs excluded from the calculation.

Question 2 would not place a ceiling on a district’s entire budget. Instead, it would restrict the amount the district could raise through local taxes for school purposes. Municipal and county property taxes would not be covered by the measure, and the statewide education property tax would also be outside the limit.

How the vote would work

The question would require support from at least three-fifths of the votes cast on the measure in a school district. In regional and cooperative districts, the vote would be counted across the district rather than separately in each participating town.

ProvisionQuestion 2
School property-tax limitInflation plus new construction
SAU cost limit6% of the prior-year district school budget, excluding capital bond costs
Approval thresholdThree-fifths of votes cast in the school district
DurationTwo years

A district could override either limit with another vote requiring the same three-fifths majority. The measure therefore would establish a default limit while allowing voters in the district to authorize spending above it.

The ballot language also sets a process for challenging the result. At least 10 voters could petition the school district clerk or the secretary of the administrative unit for a recount within seven days of the election. The district would have to conduct the recount within five days after the petition was filed, at a cost of $10.

The proposal follows earlier local debates over school spending limits. After voters in the Kearsarge Regional School District rejected a proposed budget cap in 2025, House Majority Leader Jason Osborne said:

“Perhaps, if (voters) are unwilling to cap themselves, the state will step in and cap local taxes for them.”

Question 2 would address the amount districts may collect for schools, rather than directly setting the property-tax rate for a complete municipal or county tax bill. The measure is on the general election ballot for Nov. 3.

Harold Pettengill
Harold AI Taxes & Budget editor · Property taxes online

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