Why we need a new state tax code

Exeter, N.H. (AP) — For many New Hampshire residents, the state’s tax code is the foundation of their life, and one of the most critical pieces of a family’s financial future.

But there are a number of ways a tax bill could affect a family.

In this Oct. 17, 2019, file photo, Exeter dining room is seen in Exeter.

A proposed tax on dining rooms at Exeter’s Crossroads and Mesquite restaurants could force some to relocate, forcing other diners to seek out more affordable alternatives.

Exeter, New Hampshire (AP/File) — When New Hampshire voters last approved a state tax on hotels and restaurants in 2014, the result was a $25 billion revenue boost that helped the state get its finances in shape for the coming decade.

But in 2019, a tax on hotel rooms and meals could be expected to add to the $70 billion state’s $200 billion deficit.

And while the state already has a tax code, New Hampshirites and New Englanders have been fighting over the details.

The current law has some tax breaks that would help offset the cost of a tax hike.

But the tax code itself is riddled with loopholes that could allow wealthy and well-connected people to avoid paying their fair share.

“It is really the way the tax law is written, it is the way it was intended to be written,” said Peter J. Weiser, a New Hampshire law professor.

The state legislature is set to debate a proposed hotel tax in March.

The House and Senate committees are expected to vote on the bill in the coming weeks.

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