business enterprise tax

Sara Plourde / NHPR

The debate over New Hampshire’s business taxes has largely played out along partisan lines this year, with Republicans supporting staggered cuts to the state's corporate tax rates, and Democrats opposed. But political rhetoric aside, let's look at the underlying numbers to better grasp the core policy issues.

N.H. Debates Business Tax Structure

Jun 4, 2015
Jason Dirks / Flickr / Creative Commons

Is it time for a business tax reboot? Some in New Hampshire say a comprehensive re-examination of our business tax structure is long overdue, given questions about fairness – competition – and the huge role these taxes play in our budget. We’ll discuss how the system works now and the  pros and cons of the proposals to change it.

Ryan Szepan / Flickr Creative Commons

Governor Maggie Hassan issued an Executive Order Wednesday that would freeze state hiring and purchasing, as well as out-of-state travel. The governor says the freeze is needed following a dramatic drop in revenue last month. 

Gov. Hassan says April education and general fund revenues fell short by almost $22 million.  Prior to that, the state had been running a roughly $25 million surplus.  She says the shortfall has lowered the state’s cushion to just below $4 million.

Ken Teegarden via Flickr CC

The 173-163 vote mostly followed party lines, with Democrats opposing the bill and all but 9 Republicans supporting it.

The bill sought to lower the rate of the business enterprise tax  from .75 to .68 percent but require large nonprofits to pay it.

House Ways and Means Chair, Susan Almy (D-Lebanon) said the proposal would put what she called fragile charities at risk and said it would be wrong to keep the bill alive, even if only to study it.

"We can’t leave all of these organizations hanging in terror. Kill this"

A veteran state lawmaker wants large non-profits -- like hospitals and colleges -- to pay the state’s business enterprise tax.

Hooksett Republican David Hess says making large nonprofits like hospitals, private colleges and prep schools pay the business enterprise tax would allow that tax’s rate to drop for everyone else.