High Court to Weigh Property Tax

By Trish Anderton on Thursday, March 15, 2001.

listen: No audio currently available. Order on CD (pdf).

28 so-called "donor towns" will ask the state's highest court to declare the statewide property tax unconstitutional. The towns say assessing practices across the state are inconsistent and result in some residents unfairly paying more for schools. The state argues the assessments are fair.

THE MOMENT THE STATE ADOPTED A STATEWIDE PROPERTY TAX TO FUND PUBLIC SCHOOLS, TOWNS THAT SAW THEIR TAXES RISE TO PAY FOR SCHOOLS ELSEWHERE OBJECTED. TOM CLOSSON REPRESENTS THE COALITION OF DONOR TOWNS THAT SUED THE STATE. SPEAKING ON NEW HAMPSHIRE PUBLIC RADIO?S ?THE EXCHANGE,? CLOSSON ARGUED THE TAX IS UNCONSTITUTIONAL BECAUSE TOWNS ESTIMATE PROPERTY VALUES IN DIFFERENT WAYS AND ACCORDING TO DIFFERENT CALENDARS.

910 It relies on assemsmts set localy and done many years ago. Some prop not revalued since 1971, others in 2001.

AS A RESULT, THE COALITION CLAIMS, SOME RESIDENTS PAY TOO LITTLE FOR SCHOOLS WHILE OTHERS PAY TOO MUCH. THE STATE HAS AN EQUALIZATION PROCESS THAT?S MEANT TO SMOOTH OUT ANY VARIATIONS BETWEEN TOWNS. BUT THE DONOR TOWNS SAY THAT PROCESS TOO IS FLAWED. AGAIN, TOM CLOSSON.

911 any fix wd take substantial time and money.

COALITION MEMBERS LIKE MOULTONBOROUGH SELECTMAN ROBERT FOSTER SAY THE PROPERTY TAX INCREASE HAS BEEN DISASTROUS FOR SOME RESIDENTS.

001 29 the inc level of people in moult not highest in state. 131/ when you take eld person on fixed inc, has lived here all there lives, you hit them with a substantial tax hike, they aren?t prepared for it nor can they afford to.

BUT THE STATE ARGUES THE TAX IS FAIR. REVENUE COMMISSIONER STAN ARNOLD SAYS THE FACT THAT TOWNS DON?T HAVE THE SAME PROCEDURES AND SCHEDULES DOESN?T MEAN THE RESULTS ARE SKEWED.

005 136 theres a number of diff methods used to estab values. As long as values are taken anew and done correctly that?s acceptable. //

THE COMMISSIONER SAYS ALL THE TOWNS DO REGULARLY UPDATE PROPERTY VALUES, EVEN IF SOME HAVEN?T DONE A FULL REVALUATION IN A LONG TIME. HE CONCEDES THE TAX ISN?T PERFECT, BUT HE ARGUES THE DEPARTMENT HAS ALREADY FIXED A NUMBER OF THE PROBLEMS. OTHER SUPPORTERS TAKE A MORE CRITICAL VIEW. STATE REPRESENTATIVE FRANK SAPARETO AGREES WITH TOM CLOSSON THAT IT WILL TAKE TIME AND MONEY TO FIX THE TAX. BUT HE SAYS IT MUST BE FIXED. ALSO APPEARING ON THE EXCHANGE, SAPARETO ARGUED ONLY A PROPERTY TAX OR AN INCOME TAX IS POWERFUL ENOUGH TO FULFILL A COURT ORDER THAT THE STATE PAY FOR PUBLIC SCHOOLS.

its easy to say we don?t like this tax. I don?t like prop tax. I don?t like inc tax. But I do like paying for schools. Prob is we don?t have the luxury of doing nothing.

TODAY?S ARGUMENTS WILL FOCUS ON TWO MAJOR QUESTIONS: FIRST, WHETHER THE TAX IS CONSTITUTIONAL, AND SECOND, IF IT?S UNCONSTITUTIONAL, WHETHER THE STATE SHOULD REPAY THE MONEY IT?S COLLECTED. ANALYST DOUG HALL OF THE NEW HAMPSHIRE CENTER FOR PUBLIC POLICY STUDIES BELIEVES THE STATE WILL HAVE AN UPHILL BATTLE TO CONVINCE THE COURT THE TAX IS FAIR. BUT HE SUSPECTS THE JUSTICES WILL STOP SHORT OF ORDERING A REFUND.

003 10 I somehow doubt the court would go along with that. They seem to have been pretty pragmatic in their prior decision in giving state almost a yar and a half to get school funding straightened around.

HALL SAYS IF THE COURT RULES AGAINST THE STATE, IT COULD OPT FOR A GENTLER ALTERNATIVE SUCH AS ORDERING THE STATE TO SEND TAXPAYERS JUST THE AMOUNT THEY OVERPAID. COMMISSIONER ARNOLD ADDS THAT WHATEVER THE FINAL OUTCOME, HE HOPES THE COURT WILL ACT QUICKLY, SO THE LEGISLATURE CAN FOCUS ON FINDING A PERMANENT SOLUTION TO THE EDUCATION FUNDING DILEMMA. FOR NHPR NEWS I?M