FAQs

 

What is the Granite State Fair Tax Coalition?

We are a nonpartisan, educational nonprofit coalition, started in the Public Policy Committee of the New Hampshire Council of Churches.  Members are deeply concerned that our current tax system is making life hard for many in our state.

The Coalition’s goals include educating people about the effects of the property tax on our state, providing information about the consequences of state leaders taking a pledge not to consider alternatives to high property taxes, and starting an honest discussion about better solutions to our state’s funding problems.

 

New Hampshire has a low tax burden, why do we need reform?

Our taxes are low on average. However, property taxes do not consider a person's ability to pay. The low overall average does not show what a big difference there is between what wealthier people pay and what others pay. New Hampshire actually has a high tax burden on people with middle and low incomes, and a very low tax burden on people with higher incomes. This means that middle and low income people are subsidizing their wealthiest neighbors.

 

Is the coalition in favor of a new tax?

No. The Granite State Fair Tax Coalition does not advocate for a new tax. The Coalition is in favor of a fair tax system that lowers our property taxes. The property tax in New Hampshire is unjust and unfair. The Coalition favors Legislators having an open mind about reforming New Hampshire’s tax structure. It is time to adopt a fair tax system that lowers our property taxes.

 

Won't my property tax go up even if there is a new tax?

Taxes only go up when spending goes up. Shifting the burden away from the property tax payer does not increase spending. Shifting the burden away from the property tax payer does not change where spending decisions are made – they will still be made at local town meetings and school meetings.

 

If you are in favor of solutions, what are some examples?

The property tax is unjust and unfair. It is up to citizens like you, our legislators and our governor to determine the best solution. Right now, all solutions are off the table because many state leaders resist considering (or even talking about) alternatives to high property taxes, and even take a pledge not to do so.  It is time for the pledge to end and the people to be heard.

 

Is the coalition in favor of a sales tax/income tax/cigarette tax/other tax?

The Coalition does not take a position for or against any particular revenue source. It is time to adopt a fair tax system that lowers our property taxes.

 

Is the coalition in favor of gambling?

Same answer as the previous question.

 

Never has a state lowered one tax by raising another, what makes you think that can happen in New Hampshire?

This is not true. Many states have lowered their property taxes by raising another tax. Michigan, Kentucky, Oregon, Kansas and Wisconsin did it in the 1990s and Idaho, New Jersey, South Carolina, Minnesota and Texas have done it since 2000. It is time for our state leaders to consider alternatives to high property taxes, just as the leaders of other states have.

 

If you give the Legislature a new tax, they will just spend, spend, spend. How are you going to prevent that?

The NH Legislature will not change if there is a new tax. It will still be elected every 2 years. They will still be unpaid. It still will be very large with each member representing a small number of voters. The Governor will still be elected every 2 years. All this adds up to the NH Legislature being the most frugal legislature in the nation.

If the Legislature starts to spend unwisely, citizens can vote in new lawmakers.

 

Isn't setting taxes at the local level the best way to keep them low?

Tax rates are set in response to decisions about spending. “Local control” over spending decisions is a cherished New Hampshire tradition.

Some spending decisions are truly “local” – like running your local fire or police department or maintaining your local roads – while others require compliance to county, state, or federal requirements and thus are not truly “local”.  This is especially true in education budgets. While we might vote on these budgets locally, in many ways we don’t have a total control over what goes in those budgets.

The reality is that, despite the cherished tradition of “local control”, our property taxes are not staying low. Since 1999, per capita income has gone up 6% while property taxes per person have gone up 55%. Our state leaders must consider alternatives to high – and unfair -- property taxes. We need a fair way to distribute the costs of things we consider essential to our New Hampshire way of life. Our state leaders must stop taking pledges and they must start listening to the people.

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