New Hampshire bill exempts vehicle inspections cutting revenue by $144625 in 2026

The New Hampshire Legislature has introduced House Bill 209-FN, which aims to modify vehicle inspection requirements for new car owners. Set to take effect on January 1, 2026, the bill proposes that vehicles purchased from licensed dealers by individuals will be exempt from inspection until the last day of the registered owner's birth month in the second year after the purchase. For corporate buyers, the exemption lasts until the last day of the purchase anniversary month in the second year.

This legislation is expected to significantly impact state revenue, particularly from inspection sticker fees. With approximately 89,000 new vehicles registered annually, the bill could lead to a decrease in revenue from inspection stickers, which cost $3.25 each. The projected revenue loss includes approximately $144,625 in FY 2026, escalating to $289,250 in subsequent years. The revenue is distributed among the highway fund, general fund, and the motor vehicle air pollution abatement fund.

Local municipalities will also feel the effects, with anticipated revenue reductions of $14,685 in FY 2027 and $29,370 in FY 2028, due to the apportionment of highway fund revenues.

Debate surrounding the bill has focused on its potential economic implications, particularly for state funding and local budgets. Proponents argue that the measure will ease the financial burden on new car owners, while opponents express concern over the long-term effects on state and local funding for infrastructure and public services.

As the bill progresses through the legislative process, its future remains uncertain, with discussions likely to continue regarding its fiscal impact and the balance between consumer relief and state revenue needs.