11 March 2009
For Immediate Release
March 11, 2009
For more information: Grant Bosse (603) 748-3659
Bartlett Center reports property tax impact of ending revenue sharing
(Concord) The Josiah Bartlett Center for Public Policy today released a report outlining how a legislative proposal to end revenue sharing would impact local property tax rates. Berlin taxpayers would face an increase of $3.16 per thousand in their tax rate unless state revenues were replaced by other sources. A dozen New Hampshire communities would face increases of over a $1.00 per thousand.
"For forty years, New Hampshire communities have relied on their share of the Business Profits Tax and Rooms and Meals Tax to fund local government," said the report's author, Grant Bosse. "Ending revenue sharing would force local taxpayers to foot the bill for fixing the state's out-of-control budget."
The Bartlett Center relied on revenue data from the New Hampshire Municipal Association and local property values from the state Department of Revenue Administration in calculating the local tax impact across New Hampshire. Governor John Lynch proposed suspending the state's two largest revenue sharing formulas in his February Budget Address, cutting $160 million that would otherwise go to cities and towns. Lynch has since backed away from suspending one revenue stream, while continue to support suspending the other. Both sources of local revenue would be suspending under House Bill 2, know pending before the House Finance Committee.
"New Hampshire towns voted on their annual budgets last night, but their tax rate might go even higher if the Legislature ends revenue sharing," Bosse added. "Lawmakers would be forcing local taxpayers to bear the burden of their budget problem."
The Josiah Bartlett Center for Public Policy is a free market think tank based in Concord, New Hampshire. For more information go to www.jbartlett.org.