New Hampshire Income Tax Amendment, CACR 13 (2012)
|Income Tax Amendment|
|Constitution:||New Hampshire Constitution|
|Status:||On the ballot|
Currently the state of New Hampshire "does not have a general sales tax or an income tax on an individual's reported W-2 wages. There are taxes on an individual's interest and dividends income, inheritance, business taxes, consumer excise taxes and other taxes." More details are available at the New Hampshire Department of Revenue Administration.
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 an individual income tax include: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
- See also: 2012 ballot measure election results
The following are unofficial election results:
|New Hampshire Constitution Convention Question|
95% precincts reporting
Results via WMUR New Hampshire.
Text of the measure
The ballot language that will appear on the ballot reads:
|“||Are you in favor of amending the second part of the constitution by inserting after article 5-b a new article to read as follows:
[Art.] 5-c. [Income Tax Prohibited.] Notwithstanding any general or special provision of this constitution, the general court shall not have the power or authority to impose and levy any assessment, rate, or tax upon income earned by any natural person; however, nothing in this Article shall be construed to prohibit any tax in effect on January 1, 2012, or adjustment to the rate of such a tax.
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.
On January 18, 2012 the New Hampshire House of Representatives voted 257-101 in favor of referring the proposed measure to the 2012 ballot. The measure was subsequently passed by the New Hampshire State Senate and placed on the ballot.
- Constitutional Amendment Concurrent Resolution 13 (status)
- Constitutional Amendment Concurrent Resolution 13 (text)
- New Hampshire 2012 election information
- Union Leader,"Legislature wants amendment to ban income tax," February 8, 2011
- New Hampshire Department of Revenue Administration,"Overview of New Hampshire Taxes," retrieved September 27, 2012
- Union Leader,"NH House to decide on state income tax ban," January 17, 2012
- General Court, "CACR 13 – VERSION ADOPTED BY BOTH BODIES", Retrieved September 14, 2012
- Note: This text is quoted verbatim from the original source. Any inconsistencies are attributed to the original source.
- 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