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NH House Votes to Raise Tobacco Tax [05/07-4]

Excerpts from: Tobacco tax tied to school funding

By GARRY RAYNO The Union Leader [05/07/04]

Defying the governor, the House yesterday voted 255-68 to approve a three-year education funding transition plan dependent on an increase in the tobacco tax.

Gov. Craig Benson reiterated after the vote that he would veto SB 302, which faces trouble in the Senate as well.

The House voted separately on the tobacco tax increase, approving it on a 246-96 vote.

Under the bill, a 17-cent increase in the tobacco tax to 69 cents a pack would go into effect July 1. The tax would drop to 59 cents a pack July 1, 2005, and then return to 52 cents a pack July 1, 2006. The tobacco tax increases will raise about $39 million in additional money.

He said in his community of Hudson, the property tax rate would go up 85 cents per $1,000 of equalized valuation if the new system goes into effect July 1 without making the proposed changes. The new system with the tobacco tax increase would lower the increase to 35 cents per $1,000.

House Minority Leader Peter Burling, D-Cornish, said: “We are here to make a choice. Will we pay for public education with ever-increasing property taxes or will we vote today to hold down property taxes by passing a modest increase in the cigarette tax?”

Rep. John Gibson, R-Merrimack, said: “I’m violating that pledge because it is the right thing to do. We are increasing the cigarette tax to lower property taxes . . . Failure to do so would harm our communities.”

 

 

 


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