Ayotte vetoes ‘paint tax’ legislation

(The Center Square) —  New Hampshire Gov. Kelly Ayotte has vetoed a controversial bill that would have set a new tax on retail paint sales to help cities and towns cover the cost of recycling.

The legislation, which had passed the Legislature with bipartisan support, would have set a mandatory surcharge on paint purchases and required manufacturers to finance a new program to collect unused paint. It was aimed at offsetting costs to local governments from recycling unused paint and cans, which must be separated from other trash and recycled materials.

But Ayotte, who ran for the governor's office on an anti-tax platform, blasted the proposal and said it would shift the cost of disposing of unused paint to consumers. She wrote "No Sales Tax" in red ink underneath her veto of the legislation. 

"NO Sales Tax. Not now. NOT EVER!" she posted on social media Monday afternoon. 

House Bill 451 would create a voluntary program allowing consumers to bring old paint and paint cans to Home Depot and other retailers for recycling. The costs would be covered by a new "fee" on paint cans ranging from around 30 cents to $2.45, according to the proposal.

Backers said the recycling program, which included the New Hampshire Municipal Association, would help improve the environment and ease the cost to local governments of disposing of unused paint, which can contaminate soil and bodies of water if improperly dumped. 

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But critics, like the group Americans for Tax Reform, called the legislation a "solution in search of a problem" and pointed out local governments in New Hampshire have "successfully" dealt with the problem of old paint for decades with so-called "Hazardous Waste Days" that allow residents to drop off paint cans for disposal.  

They've also pointed out that it runs counter to efforts in the Republican-controlled Legislature to cut the state's corporate and business taxes as part of broader efforts to maintain New Hampshire's so-called competitive "advantage" over other higher tax states. New Hampshire has no state sales tax or individual income tax. 

The New Hampshire chapter of Americans for Prosperity were among the groups that praised the governor's decision to reject the legislation.

"This bill would have shifted costs onto hard-working residents and expanded government mandates, both of which go against New Hampshire's Live Free or Die values and our long-standing commitment to limited government and individual responsibility," Sarah Scott, AFP-NH's deputy state director, said in a statement. 

"AFP-NH thanks Governor Ayotte for her leadership and for standing up for taxpayers and ensuring the Granite State remains a place where businesses can operate without unnecessary, burdensome regulations," Scott added.