Rep. Schamberg proposes redirecting larger share of business tax revenue to education trust fund to cut property tax burden

Concord ' Rep. Tom Schamberg told the House Ways and Means Committee on Oct. 12 that two related bills he filed, HB 255 and HB 318, are part of a package meant to shift a larger share of business‑tax revenue into the Education Trust Fund and reduce the local property‑tax burden.

Schamberg framed the bills as a path toward local property‑tax relief. "The legislative intent of this bill ... is of local education property tax relief for all real estate taxpayers," he said, and presented DRA figures that the two bills together would raise an estimated $226 million for the Education Trust Fund using FY24 data: roughly $158 million from HB 255 and about $68 million from HB 318.

How the bills would work and fiscal context

Both bills would change the percentage of revenue from the business enterprise tax (BET) or related business tax buckets that are deposited into the Education Trust Fund. Schamberg said the package is one part of a four‑bill approach he will present to address the so‑called "swept tax" and the state's adequacy funding obligations outlined in recent legal decisions.

Committee questions and concerns

Members pressed Schamberg on where the remainder of the State's operating revenue would come from if a larger share were directed to education. Schamberg said the bills do not raise new statewide taxes directly and that additional proposals in the package would identify other sources or policy changes; he argued the package should be considered together.

Several members cautioned that directing more revenue into the Education Trust Fund would require trade‑offs for other state programs or additional revenue sources. Committee members also raised the legislative and historical context for adequacy formulas and for the Education Trust Fund's statutory minimum (discussed in committee dialogue as set in 2011), and suggested any changes require broader fiscal planning.

DRA presentation and limits

The Department of Revenue Administration provided a fiscal note and quick guide that showed revenue impacts based on FY24 collections. DRA staff told the committee they could provide historical revenue series and other breakouts if the committee sought more context for modeling the policy's impacts across state and local budgets.

Ending

The committee took testimony, asked DRA for follow‑up items and did not take a committee vote. Lawmakers signaled they expect more detailed package proposals and fiscal analysis before deciding whether to pursue legislative changes to the allocation of business‑tax revenue.