New Hampshire Income Tax Amendment, CACR 13 (2012)
|New Hampshire Constitution|
Currently the state of New Hampshire charges some personal income taxes: the gambling winnings tax that assesses a 10 percent levy on winnings of $600 or more and a 5 percent tax on dividends and interest.
The measure states: "No new tax shall be levied, directly or indirectly, upon a person’s income, from whatever source it is derived."
Current states without a state income tax include: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.
House Speaker William O'Brien, who co-sponsored the proposed measure, said, "The point of this amendment is to avoid this state being changed. We're the only state in the Northeast that doesn't charge an income tax, and I want to keep it that way."
House Republican Leader D.J. Bettencourt, one of the amendment's co-sponsors, said future business taxes would not be affected by the amendment. According to him, the amendment applies only to human beings, not corporations that the law considers "persons".
Opponents of the proposed measure argue that the measure is too broadly written and could result in litigation. Rep. Mary Cooney said the amendment leaves too much room for interpretation as to what is included in "a new tax." Additionally, opponents note that the measure may tie lawmakers' hands. Rep. Susan Almy said, "It is trying to make sure you couldn’t put an income tax in but, in the process, it is also stopping probably any future change in business taxes or any future change in any other tax we may have."
Path to the ballot
- See also: Amending the New Hampshire constitution
In order for the state legislature to place a proposed constitutional amendment on the statewide ballot, both chambers of the state legislature must approve doing so by a vote in each house of at least 60%. Once any such constitutional amendment is on the ballot, the state's voters must approve it by a 2/3 vote for it to pass.
- Constitutional Amendment Concurrent Resolution 13 (status)
- Constitutional Amendment Concurrent Resolution 13 (text)
- Union Leader,"Legislature wants amendment to ban income tax," February 8, 2011
- Union Leader,"NH House to decide on state income tax ban," January 17, 2012
- Associated Press "NH Senate considering amendment to ban income tax," April 4, 2012
- Associated Press,"NH House seeks to enshrine personal income tax ban," January 16, 2012
- Associated Press,"NH House passes income tax amendment," January 18, 2012