CONCORD, NH — The New Hampshire “tax-free advantage faces an internal challenge here, after the NH House on Wednesday voted down a bill by a vote of 164-151 proposed by Sen. Jeb Bradley (R-Wolfeboro) intended to prevent the court’s decision from burdening businesses. The Senate then voted 23-0 to disagree with the House.
The “Wayfair Decision,” as explained by the following post on the NH Department of Justice website, is at the heart of this legislative action:
On June 21, 2018, the United States Supreme Court issued its decision in South Dakota v. Wayfair, Inc., et al. In that case, the Court overturned existing law, which requires that a seller be physically present in a state before the state may impose sales and use tax collection requirements upon the seller. As a result, more than 10,000 jurisdictions which have a sales and use tax may seek to impose collection requirements on out-of-state sellers, potentially including New Hampshire businesses.
On Thursday, NH Sen. Lou D’Allesandro, D-Manchester, said he was disappointed in the House vote.
“We worked very hard for the full week from morning to afternoon to put something together that made sense. This could have a devastating effect on New Hampshire businesses, D’Allesandro said. “Business taxes represent 33 percent of revenue we gain. It’s how we run the state.”
Although the Senate bill “was not perfect,” according to D’Allesandro, it had “a bipartisan flavor,” and was vetted by the governor’s legal counsel, the Attorney General, and the Department of Revenue Administration.
“We worked out something that made sense. Was it perfect? Nothing is ever perfect but it was something to let our business world know we’re thinking of them and protecting them. We are one of only five states with no sales tax, and we stood our ground.”
D’Allesandro said he expected that the bill would come back in special session, and on “veto day” in September.
Governor Sununu issued a statement following the House vote on Wednesday:
“The people of New Hampshire sent us to Concord to get things done and today, the New Hampshire House failed to do their job. After the State Senate unanimously passed a bill to protect the New Hampshire Advantage, the House chose to throw up their hands and rely on a study commission.
While the House wastes time, they left our state’s small businesses vulnerable to being forced to collect other state’s sales taxes. I have already spoken with the Attorney General and his office will do everything in its power to protect New Hampshire’s small businesses.
Despite today’s outcome, I will never stop fighting for our small businesses and the New Hampshire Advantage.”
