New Hampshire Voters Face 60 Percent Threshold for School Tax Cap

A Saint Anselm College poll indicates that 57 percent of New Hampshire voters currently favor Question 2, a proposal to cap local school property taxes. The measure requires a three-fifths majority to pass, a threshold that stands at 60 percent. This high bar distinguishes the tax cap from standard bond measures or constitutional amendments, which typically require a simple majority or a different supermajority structure.

The question appears on the general election ballot for Tuesday, October 30, 2026. If adopted, it would limit local school property tax growth to the rate of inflation plus the value of new construction. It also caps School Administration Unit central office spending at 6 percent of a district's total budget. Capital bond costs are excluded from both limits. The caps would take effect for the 2027-2028 school year in any district where voters approve the measure.

The Department of Revenue Administration estimates it needs $100,000 to reconfigure its systems to report and set the new tax rates. The agency raised concerns about calculating new construction totals. The law defines net new taxable property growth as new construction, physical expansion, subdivision, or conversion from exempt to taxable status. It explicitly excludes market appreciation, revaluation, and changes in assessment methodology. The department must certify each town's net gain annually.

Republican lawmakers drafted the measure as part of a broader effort to impose statewide property tax controls. House Majority Leader Jason Osborne previously argued that if voters are unwilling to cap themselves, the state must step in. The current proposal, signed by Gov. Kelly Ayotte, follows several failed attempts to pass budget caps in specific districts. In 2025, eight districts placed budget cap articles on their warrants, and all were defeated by voters. The Kearsarge Regional School District defeat prompted Osborne to introduce legislation for a statewide cap, which ultimately led to the current ballot question.

Opponents argue the cap will restrict districts facing rising costs for heating, utilities, transportation, special education, and health insurance. They contend that inflation exceeds these administrative increases, forcing cuts to programs, sports, and staff. Supporters counter that special interests, such as teachers and parents, dominate school district meetings and block necessary fiscal discipline. The question also includes a provision that caps do not affect classroom instruction or school-based services, though this language is not codified in state law. School boards retain authority to decide which budgets to cut if the tax rate exceeds the cap.

Two parents challenged the question's placement on the ballot, claiming it was unconstitutional and confusing. The Supreme Court upheld the lower court's decision without ruling on the merits. The Attorney General's Office issued guidance clarifying that the three-fifths majority calculation will include only those voting for or against the question. Voters who leave the question blank will not be counted in the denominator. Under this method, the Saint Anselm poll results shift to 64 percent in favor and 36 percent opposed.

The measure does not cap overall property taxes, which include municipal and county expenses. It only limits the school portion of the tax bill. The state's share of public education funding is currently 19 percent, the lowest in the nation, compared to a national average of 47 percent. The question does not alter this state share. A separate bill signed by Ayotte declares public education a shared responsibility, a stance that contrasts with the Supreme Court's Claremont I decision, which assigned the responsibility to the state to provide and fund an adequate education for every child.