State, 26 municipalities appeal judge's order on statewide education property tax.

TAX exemption; TAX administration & procedure; PROPERTY tax; EDUCATIONAL finance; SCHOOL districts

The state of New Hampshire and 26 municipalities have appealed a judge's order that declared the administration of the statewide education property tax unconstitutional. The appeal challenges the reasoning behind the judge's opinion and suggests that the Supreme Court revisit its opinions in the Claremont cases of the 1990s. The plaintiffs argue that the school funding system, which relies on local property taxes, violates the state constitution. The tax is collected by municipalities and appropriated to school districts, but it is considered a state tax. The impact of allowing property-rich municipalities to retain excess funds from the tax is significant, as it results in disparate tax rates. The state argues that the tax is proportional and reasonable and that the revenue is used solely to fund public schools. The Supreme Court will schedule an oral argument in the case after the plaintiff property owners file their briefs. [Extracted from the article]

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