According to employee report
CONCORD – The New Hampshire Senate issued a press release on Monday saying the Republican budget is offering significant tax breaks to communities, but Democrats say it is unsustainable.
“New Hampshire boroughs will receive a 45 percent increase in meal and rental tax revenues thanks to the recently passed Republican budget,” the statement said.
Under HB 2, the local share of state tax revenue on restaurants, hotels and car rentals increased to 30%, compared to 22% in the last budget. Coupled with the strong growth of New Hampshire’s hospitality industry, this results in more than $ 100 million going straight into the local till to help keep local property tax rates down.
In total, the New Hampshire Treasury is sending $ 100,143,752 to cities and towns by the end of the day. That’s a 45.5 percent ($ 32 million) increase over fiscal 2021, the press release said.
Senate President Chuck Morse, R-Salem, said, “Tax cuts are always a priority for Republicans. It puts more money in the pockets of working families, makes New Hampshire life more affordable, and tells businesses New Hampshire is the place to go. The additional $ 32 million that will be sent back to our cities and towns will make a real difference, especially when it comes to lowering local property tax rates. “
See the list of municipalities that will benefit from this: http://indepthnh.org/wp-content/uploads/2021/12/Room-and-Meals-Revenue-Sharing-2022.pdf
Senate minority leader Donna Soucy, D-Manchester, said in an email response that she was not surprised to see short-term revenue increases going to communities.
“The problem is that it’s not sustainable,” said Soucy. “The budget passed by the Republicans provides for a one-time tax cut of $ 100 million in some places, which means a tax increase of $ 100 million for taxpayers next year. Plus, the Republicans’ tax cut package will only benefit the richest people in New Hampshire. “
Soucy, for example, said the elimination of interest and dividend taxes represents an estimated annual loss in sales of $ 140 million, with only the highest incomes benefiting from 10%.
“It’s also important to remember that this Republican budget is doing less for education than continuing Democratic policies would have done. All in all, New Hampshire will suffer a loss of $ 700 million in revenue to the state over the next few years. While I hope this one-time cash is helpful right now, the increased room and meal tax breakdown is really unsustainable, ”said Soucy.
Governor Chris Sununu said, “We’ve cut room and meal taxes to their lowest level in over a decade, and we’ve still sent more money back to cities and towns. Instead of cutting costs, we have cut cash, which has given cities additional flexibility – a win for our citizens. “
The increase in meal and rent revenue sharing was spearheaded by Senator Denise Ricciardi, R-Bedford, whose legislation was added to the state budget package in June. “I made it my goal last session to protect local wealth taxpayers by making sure the state kept its promise to share more of the revenue our M&R tax generates. I am happy and very satisfied that our cities and municipalities are finally receiving the amount they have been promised for so long, ”said Ricciardi.
Increased revenue sharing is just one example of how the new Granite Staters budget provides tax breaks, the press release said. The balanced budget also cut corporate taxes, began phasing out interest and dividend taxes on seniors’ investment income, and cut $ 100 million in statewide wealth tax, the statement said.