CONCORD - Gov. John Lynch Tuesday signed a bill that clears the way for cities, towns and school districts to adopt caps on local tax increases.
The bill also states that any tax cap that voters elected to make part of their charter is now valid, whether or not it was legal to adopt the cap at the time it passed.
The bill, Senate Bill 2, gives communities clear guidelines and greater leeway in adopting the caps. It also allows caps to be exceeded with super-majority votes of the local governing body.
In a city like Manchester, the governing body would be the Board of Mayor and Aldermen. In a small town, it would most often be voters at an annual meeting.
The bill does not set out a specific percentage of votes needed to exceed a cap. Instead, it allows communities and school districts to choose the level, which is most often either a two-thirds majority or of a three-fifths majority.