The implications of this bill are significant for the financial operations of local governance in Exeter. By ensuring that the state compensates local municipalities for real estate tax revenue losses, it aims to provide financial relief where local budgets may be strained due to the presence of tax-exempt properties. This can help municipalities maintain essential public services while ensuring that they are not overly burdened by state policies on property tax exemptions. Additionally, the bill specifically stipulates the use of funds; funds appropriated from the state will initially be directed toward establishing a municipal police department in Exeter if needed.
House Bill 7339 seeks to amend current laws governing state aid to municipalities, specifically addressing the treatment of state-owned properties in the town of Exeter. The bill proposes that state-owned real estate in Exeter will no longer be exempt from appropriations meant to compensate municipalities for lost property tax revenue due to tax-exempt statuses of certain institutions. Instead, it establishes that the state will appropriate funds that equal 27% of the tax that would have been collected if such properties were taxable, therefore providing a financial incentive to Exeter and its residents.
While the bill appears to favor local governance, there are points of contention regarding the new responsibilities it insinuates. The bill makes it clear that the town of Exeter has no obligation to provide law enforcement services to state properties unless they have a municipal police department established. This raises concerns about public safety deployment, especially in a town where state facilities are present. Critics may argue that the bill places additional pressures on local government to fund public services without ensuring that adequate funds will be consistently allocated by the state.
If enacted, this legislative change would affect existing statutes concerning municipal funding and public service provisions, potentially prompting further discussions on the responsibilities of local governments in light of state policies.