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Exempting Internet Access from Taxation Would Increase Fiscal Stress

April 25, 2012 State Tax Policy
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A proposal before lawmakers to exempt Internet access from New Hampshire’s Communications Services Tax could reduce state revenue by as much as $12 million annually.

Like the tobacco tax cut, this reduction was never accounted for in the state budget. As NHFPI’s latest Issue Brief explains, the proposal would therefore add to the fiscal stress New Hampshire faces now and in the future. More to the point, it could force policymakers to make further cuts to areas such as higher education and health care.

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Testimony Regarding Constitutional Amendment CACR13

April 11, 2012 State Tax Policy
NH flag

A proposed constitutional amendment to prohibit any new tax on a person’s income all but guarantees lengthy court battles over state tax policy, according to NHFPI Executive Director Jeff McLynch, who testified against CACR 13 before the Senate Internal Affairs Committee on Wednesday, April 4.

McLynch also presented an analysis written by University of New Hampshire law professor Marcus Hurn, who is author of several scholarly articles on the N.H. Constitution and its taxing authority. According to Hurn, incorporating CACR 13 into the constitution “would start a cascade of constitutional questions that could take years to settle.”

McLynch’s testimony and a link to Hurn’s analysis follow:

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Constitutional Limits on Taxes or Spending Would Increase Pressure on Local Property Taxes

March 20, 2012 Research, State Tax Policy
NH state quarters

Local governments across New Hampshire have received less aid from the state to meet the needs of local citizens and businesses in recent years. As a result, they have been forced to increase local property taxes to preserve the education, public safety, transportation, and other services that make New Hampshire’s communities desirable places to live, work, and visit. Competing versions of a constitutional amendment now before the Legislature risk adding to these pressures when New Hampshire already relies on local property taxes more than any other state.

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Declining Business Tax and Other Revenues Suggest Caution for State Budget

15 Aug 2019

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As policymakers continue to consider State Budget options and choices during the ongoing continuing resolution, understanding State revenue trends remains critical to determining the State’s ability to pay for needed services and the policy choices that affect available resources. With State Fiscal Year 2019 completed and SFY 2020 underway, recent months of revenue collections have provided some additional insight into whether the State might expect more revenue in future years. Questions remain about the future of business tax receipts in particular, which have been very difficult to predict due to recent abnormal behavior following the federal tax overhaul; however, recent data suggest anticipated declines in receipts may limit revenue going forward.