business enterprise tax

NHPR Staff

The House held a hearing Wednesday on a bill that would cut business taxes in the state.

The state projects that it will lose about eighty million dollars in revenue by 2021 if the tax cut passes, assuming the economy follows current trends.

But supporters argue that the cut would have positive impacts on local businesses. Bruce Berke, the New Hampshire Director of the National Federation of Independent Business, says that cutting taxes will lead to growth.

NHPR Staff

Governor Chris Sununu delivers his budget proposal to lawmakers this week. It’s the first step in a months-long journey to build a two-year spending plan that will affect nearly every aspect of life in New Hampshire.

To help you prepare for the months of headlines to come, NHPR reporters are highlighting areas of the budget that are likely to generate the most discussion.

After a long battle in Concord, the state’s business tax rates are now set to drop starting next year, the first such cut in more than a decade.

But the question of whether these cuts will succeed in luring new businesses to New Hampshire doesn't yet have a clear answer.

Allegra Boverman for NHPR

Legislators have reached a deal with Gov. Maggie Hassan on the state budget. 

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.