Question from a Masshole

[Killarney]

I was wondering something about NH and taxes. I know that you don't have state income tax or sales tax, but you do have property tax. So, I assume that the town's fire, police, and public schools are paid for by the town's property taxes. But, how does NH pay for state-wide stuff? Like highways, state colleges and universities, etc? Where does the money come from to pay for UNH?

Just curious. Thanks! :)

[Kathy in Cambridge]

1. I'm a Masshole too. NH property taxes are pretty damn high

and the housing prices and assessments in the towns bordering Mass are very high. My parents just sold a condo on the NH seashore in a growing town because they were reassessed almost yearly, and their property taxes were more on a 1300 sq foot condo in NH than a 3000 sq foot house in Cambridge MA. Derry or Londonderry has a 32% prop tax rate. Figure that out in a region where you can't buy a house for under 300K! :scared:

[NewHampshireDem]

2. Well, there's a reason UNH has one of the highest tuitions ...

of any state university.

As for the rest, tax money comes from taxes on Business and Enterprise, business profits, individual interest and dividends, cigarette taxes, alcohol sales, an 8% meals and lodging tax, and assorted fees. For example, we have one of the highest fees for registering your car and getting your drivers' license. But, other than all those taxes, we're tax free. :eyes:

[Kathy in Cambridge]

3. I used to go to NH liquor stores

until I realized the Kappy's chain in Mass. was cheaper. What is the deal w/NH Liquor Stores? I thought they were supposed to be a bargain? :shrug:

[NewHampshireDem]

4. Exactly ...

that's what they WANT you to think. :evilgrin:

Seriously, I think they used to be and probably still are cheaper than CT and NY. However, you can get better deals in MA if you're smart. I've noticed that over the past 10 years than I've been here in NH full time the crowds at the state stores on the border (Hampton/Seabrook) are a lot smaller than they used to be. I don't have any hard numbers, but I wouldn't be surprised if sales are down.

Plus, the selection generally sucks. I usually buy wine and specialty alcohols at Yankee Spirits in Sturbridge when I'm in the area.

[dnbmathguy]

5. Lots and lots of little things

The biggest, as NHDem said, is probably the 8% food and lodging tax. There's also taxes on all sorts of other things, most of which NHDem already mentioned. Some others include bingo/poker, the lottery, and tolls. Tolls are about the least fair method of getting money, as anyone who lives north of Concord, west of Amherst, or south-east of Manchester could, theoretically, never have to drive through them. Contrast that to someone who wants to go from Nashua to Concord, who has to pay 75 cents each way... and that's with a 50% discount from buying tokens, which they've talked about decreasing. Plus the town of Merrimack has tollbooths off of every exit on the Everett Turnpike, accounting for practically half of all of them in the state.

And there's also the statewide property tax. As far as funding for public schools... that's an entirely seperate issue, with nothing really solved, even with the passing of SB 302.

[maxanne]

6. Mediscam

NH has been scamming Medicaid $$ for years - not using it for it's intended purpose, but putting it right in the general fund. The feds are about to crack down on that, however, so the state is in even bigger trouble financially. We're looking at about a $300 million shortfall in revenue. Given that both parties are brainwashed on the taxation subject - guess where the money will come from?

THE PROPERTY TAX!!

We ditched the estate tax a few years back, so now we tax the wealthy even less - and we don't tax the wealthy much at all. NH has a disproportionate number of millionaires (given our population) because they get a free tax ride. A graduated income tax would be the fair solution - but taxation is akin to godless communism here. William Loeb is still dictating our tax policies - from the grave.