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Bill

Bill

HB 1385

prohibiting the use of negative property tax rates in certain municipalities.

2026 Regular Session Introduced by Bob Lynn and 3 co-sponsors

Bill prohibits New Hampshire municipalities from using negative property tax rates, limiting local fiscal tools for managing surpluses or providing taxpayer relief.

Inexpedient to Legislate: MA VV 03/05/2026 HJ 6 P. 29
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WeVote Research Nonpartisan
Bill Summary · HB 1385

Legislative bill overview

HB 1385 would prohibit New Hampshire municipalities from implementing negative property tax rates, which occur when a municipality returns money to taxpayers rather than collecting taxes. The bill targets a specific fiscal practice used by some towns to manage budget surpluses or fund relief programs through the tax system.

Why is this important

Negative tax rates represent an unusual municipal finance mechanism that affects how local governments distribute revenue and manage budgets. The bill's prohibition would standardize property tax practices across the state and potentially limit municipalities' flexibility in fiscal management, though the practice appears to be uncommon.

Potential points of contention

  • Municipal autonomy vs. state control: Whether the state should restrict local governments' ability to use tax mechanisms for fiscal management
  • Definition and scope: Clarity on what constitutes a "negative property tax rate" and whether it applies to credits, rebates, or actual negative assessments
  • Fiscal alternatives: Impact on municipalities currently using this practice and available alternatives for distributing surpluses or providing taxpayer relief

Compiled from official sources — confirm details with the bill’s official record.

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