GST Comments on Lift Ticket and Electronics Sales Tax

by | Mar 30, 2020 | Legislation, Special Alerts

Among the Worst (Recent) Bills were those to Introduce Sales Taxes on Lift Tickets and Electronics

These two sales tax bills were considered in the current Legislative Session:
HB 1492: establishing a tax on the retail sale of certain electronic devices to fund education. Read it here.
HB 1652: including ski area ticket sales under the meals and rooms tax and dedicating the revenue to the governor’s scholarship program for New Hampshire resident students. Read it here.
In a rare outbreak of common sense, the NH House majority voted down both bills.

“It’s for the Children!”
Both bills were explicitly identified as raising revenue to support education.
The rationale for the bills must have been the premise that education funding is at risk in this state.

Actually, total spending is increasing while student enrollment is decreasing.
NH Dept. of Education reports total education spending in school year 2018-2019 is up 22% over 2008-2009.
Meanwhile, Dept. of Education reports student enrollment in 2018-2019 is down 12% from 2008-2009.

GST opposed both of these bills for several reasons
The current tax structure in NH (Click for a summary.) adequately supports state spending.
New avenues of taxation aren’t necessary when the state has a surplus under its current tax regime.
New revenue streams, once established, are easy to be increased. Why create a sales tax?
Our “Tax-free NH” status is a major reason cross-border shoppers support our businesses and economy.

The Center Square of New Hampshire asked GST Chairman Ray Chadwick to comment on these bills.

Click to read their article including Chadwick’s remarks, including the following
Chadwick said his group works to keep residents informed of new taxation measures.
“On the electronics tax, our view is it may be narrow today, but someone may try to expand it,” Chadwick said, “the bills were sold along the lines of generating revenue for education, but we are in a state where the last three budgets have increased budgets for education support.”
“The idea that education is hurting for money isn’t supported by the facts,” Chadwick said.

Posted by GST Chairman Ray Chadwick

To find NH Department of Education Data Reports on a variety of metrics, click here.

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