First published in NH Business Review, September 8, 2023
Rate reductions in New Hampshire’s Business Profits Tax and Business Enterprise Tax implemented between 2016 and 2022 did not appear to spur sufficient economic growth to offset revenue losses.
While combined business tax revenues rose 118% between state fiscal years 2015 and 2022, the concurrent tax rate reductions did not cause this revenue growth. As detailed in NHFPI’s August 2, 2023 Issue Brief, six key pieces of evidence support this conclusion.
First, while BPT revenues increased during this time, BET revenues stagnated. Available state data show BET receipts were lower in tax years 2019 and 2020 than in 2015, before the rate reductions.