Panel clears NH bill intended to reduce property taxes

A conference committee of the New Hampshire Legislature approved a bill Wednesday that would cut the business profits tax from 7.6 percent to 7.5 percent and provide a one-time payment to cover 7.5 percent of pension costs towns and cities pay for teachers, police and firefighters.

This payment would cost the state $28 million.

New Hampshire currently has $287 million in surplus revenue, so this is a good time to provide additional support to municipalities, said Rep. Tim Lang, R-Sanbornton. He also pointed out that the business tax cut would be a permanent reduction.

Sen. Jeb Bradley, R-Wolfeboro, said the payment to towns and cities is intended to allow them to reduce local property taxes.

He acknowledged that there has been a lot of debate on whether the state should permanently agree to cover 7.5 percent of municipal pension costs.

“If we’re generating the kind of revenue we are right now, we should do it, but that should be part of next year’s budget,” Bradley said.

Rep. Patrick Abrami, R-Stratham, questioned whether municipalities would actually use the money to reduce property taxes.

More from this section

Cities with the fastest-growing home prices in New Hampshire

• +2

How gas prices have changed in New Hampshire in the last week

• +4

Best colleges in New Hampshire

Bradley said language in the bill makes clear this is what the money is for, but added there’s no way to ensure it’s used that way.

“It’s like anything else,” he said. “When we send money back to cities — it’s local control run by selectboards, city councils.”

The bill will now be scheduled for a vote in the House and Senate and, if passed, would go on to Gov. Chris Sununu for his signature.

•••

Rick Green can be reached at rgreen@keenesentinel.com or 603-355-8567.

These articles are being shared by partners in The Granite State News Collaborative. For more information visit collaborativenh.org.