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One of the hallmarks of New Hampshire government is its insistence on maintaining low personal and business tax burdens. To that end, there’s no broad-based standard income, sales or estate tax. Inventory, capital gains, and professional services are also tax-free.Unlike other New England states, however, New Hampshire maintains two major business taxes. The first to be instituted was the Business Profits Tax (BPT). But since the bulk of the state’s businesses range from the small-to-very-small, larger firms complained they were shouldering the bulk of the tax burden. So 1993, the Legislature instituted the Business Enterprise Tax (BET). As Jennifer Weiner writes in “How Does New Hampshire Do It?,” a report released by the Boston Federal Reserve, the BET taxes “wages and salaries, interests and dividends paid by businesses.” In other words, it is, technically, an income tax, but the burden’s placed on businesses, rather than individuals. At 0.75 percent, the BET is also a lower rate than a standard state income tax.The other major piece of New Hampshire’s revenue pie is property tax. Residents pay both a state and town property tax. In 2010, Kiplinger’s reports the State Education Income Tax was “$2.35…per $1,000 of total equalized valuation.” Town rates, meanwhile, can vary widely across the state. If you don’t combine New Hampshire’s two business taxes, property tax makes up the largest slice of revenue, at 16 percent.Another notable aspect of New Hampshire’s tax system, as Weiner notes in the Boston Fed report, is that it’s highly diversified. No one tax makes up 20 percent of money coming in. Other major state taxes include Meals and Rooms, Tobacco, Liquor Sales and Distribution, Real Estate Transfer, Interest and Dividends, Insurance Premium, Communications, and Utility Property Taxes.Summary provided by StateImpact NH

Appraising the Property Tax

New Hampshire communities have long depended on it to fund government services and schools. Over the years that reliance has grown, as state funding has abated. The tax is often lauded for enhancing local control but criticized for over burdening those on fixed incomes.  We’ll look at these arguments both in this state and nationally.

Guests

  • Steve Norton - Executive Director of the New Hampshire Center for Public Policy Studies.
  • Jane Malme - Lincoln Institute of Land Policy Fellow. He's also  an attorney who studies, teaches and advises on property tax policy, law and administration in the U.S. and internationally.

We'll also hear from

  • Dave Thompson - Radio News Director of  Prairie Public Radio in Bismarck North Dakota 

Click here to read the report from the New Hampshire Center for Public Policy Studies on property taxes and how much local governments rely on property taxes for municipal services.
 

Laura is well known in New Hampshire for her in-depth coverage of important issues and is widely regarded for her interviews with presidential hopefuls. Laura is a graduate of Keene High School in New Hampshire. Prior to hosting The Exchange, Laura worked in public radio in Washington, D.C. as a local reporter and announcer for WAMU and as a newscaster for NPR. Before her radio career, she was a researcher for USA Today's "Money" section, and a research assistant at the Institute for International Economics. Laura occasionally guest hosts national programs such as The Diane Rehm Show and Here and Now. In 2007 Laura was named New Hampshire Broadcaster of the Year by the New Hampshire Association of Broadcasters.
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