New Hampshire?s 365-Day Sales Tax Holiday
by
Alicia Hansen
• 08/04/05
Throughout August, Massachusetts parents and children will stock up on
notebooks, clothes, and backpacks in preparation for a new school year. Many of
them will confine their back-to-school shopping to August 13 and 14, since
those days are "tax holidays" in Massachusetts, which means all purchases under
$2,500 are exempt from the state's 5 percent sales tax.
This year Massachusetts joins ten other states and the District of Columbia
in providing sales tax holidays (click here for
a chart of each state's exempt items and other details).
But now it seems Massachusetts might be upstaged by its neighbor to the
north.
According to the New Hampshire Union Leader, New Hampshire Governor
John Lynch has announced a new advertising campaign targeted at Massachusetts
residents. New Hampshire will spend approximately $40,000 to run an ad in the
Boston Globe on August 7, 10, and 11, proclaiming, "365 vs. 002 . . . Tax-Free
Shopping Days (for those of you keeping score)."
New Hampshire is one of only five states without a
sales tax and is therefore a popular destination for shoppers from
neighboring states, especially those living near the border. Gov. Lynch is
keenly aware of the lure of tax-free shopping:
"There is no need for shoppers to pack all of their shopping into two days
during a beautiful summer weekend, when every day is a sales tax holiday in New
Hampshire," Lynch said.
Alice DeSouza, director of the state's Division of Travel and Tourism
Development, told onlookers the state annually welcomes about 27 million
visitors. The link between the Granite State's permanent tax holiday and
tourism is "significant," she said.
Tax holidays are popular with consumers, but if a state wants to bring in
more non-resident shoppers, improve its economy, or give taxpayers a break, a
better solution is a consistently low sales tax rate–or none at all–rather
than a one- or two-day tax holiday.
As Curtis Dubay
has written, sales tax holidays are poor tax policy because they distort
consumer spending, decrease stability in the tax code, and increase retailers'
compliance costs.
More media articles about the FSP
These media articles are maintained on a non-commercial basis by
The Free State Project,
a non-profit organization, for historical, educational, scholarship,
and research purposes. (For information regarding "Fair Use", see
US Code Title 17,
Chapter 1, Section 107).
Keene's the hook in Free State commercial
by Benjamin Yelle • 02/23/04
Keene's scenic beauty and vibrant downtown have been selling points for
city business owners and politicians for years.
Now, the city's Railroad Square will be featured in a television commercial
aimed at luring members of the Free State Project to the Granite State.
Keene resident James G. Maynard, the Free State Project's New Hampshire
contact person, has produced and is featured in the commercial, which will
begin airing Wednesday. He is joined in the ad by local Free Staters Patricia
L. LaPree and Justin Somma.
The Free State Project was formed in 2001 as a movement to bring 20,000
libertarians to one state in hopes of gaining political power. Their tenets
include small government, fiscal conservatism and individual freedom. On Oct.
1, the 5,000 members of the project voted to move to New Hampshire. Maynard
estimates the group now has about 5,500 members.
"With the lowest crime in the nation, the lowest taxes in the continental
U.S., and a part-time citizen legislature, the state of New Hampshire is the
ideal place for libertarians and other friends of local, responsible government
to relocate," the project's Web site states.
The Keene television commercial – which will air on WNNE Channel 31
throughout western New Hampshire and eastern Vermont, and WPTZ Channel 5 in
Western Vermont and eastern New York – is part of a campaign aimed at
convincing voters in Killington, Vt., to secede from that state and join New
Hampshire. It was filmed last week.
The project has also developed three half-page newspaper ads which have run
in the Mountain Times of Killington.
Killington selectmen are urging voters to secede from Vermont because they
claim the town is overtaxed by the state. They have discussed rejoining New
Hampshire – a move many claim is outrageous.
Vermont Secretary of State Deborah Markowitz said Killington has little
chance of secession "absent an armed-insurrection type of thing."
But supporters of the move say the town's restaurants, inns and other
businesses send $10 million a year to the state capital in sales, room and meal
taxes, but the state returns just $1 million in state aid to Killington.
The town is hit especially hard by a statewide property tax imposed in 1997
to fund schools. Killington, population 1,092, won a Superior Court order that
called the state's method of assessing local properties "arbitrary and
capricious," but the Vermont Supreme Court reversed that decision. New
Hampshire, 25 miles east, has no income tax or sales tax.
Maynard said the commercial attacks Vermont's tax system "in a
light-hearted, comical fashion."
He said the message the commercial tries to get across is that state
government waste and a burdensome tax system can turn any town into another
Killington. Maynard said the commercial serves a dual role in showing people
what a great place New Hampshire – and Keene specifically – is to
live.
"Keene is a beautiful, beautiful place," Maynard said. "I wouldn't want to
do (the commercial) anywhere else."
While the Free State Project has been out of the national media spotlight
lately, Maynard said the group has been busy with a "massive reorganization"
designed to ease the move to New Hampshire.
"We've been working hard every day," he said. "We're really looking forward
to making things better for ourselves, our parents and our children."
Associated Press contributed to this report.
More media articles about the FSP
These media articles are maintained on a non-commercial basis by
The Free State Project,
a non-profit organization, for historical, educational, scholarship,
and research purposes. (For information regarding "Fair Use", see
US Code Title 17,
Chapter 1, Section 107).
Benson gives welcome to Free State
by Katharine Webster • The Associated Press • 11/02/03
MANCHESTER – Gov. Craig Benson welcomed members of the Free State Project
to New Hampshire on Saturday, saying he was excited about their plans to move
to the state and promote their agenda of smaller government.
"We'd love to have you," Benson told several Free Staters at the annual
convention of the state Libertarian Party, held at the Highlander Inn.
"We don't have to agree on everything to make things happen. What we have to
agree on is that we're going to leave things better than we found them," he
said.
The Libertarian Party and the Free State Project share members and political
goals: scaling back government, taxes and reliance on public schools.
Saturday marked one month since supporters of the Free State Project announced
they had chosen New Hampshire as the stage for their political "revolution."
They hope to move 20,000 "liberty-minded individuals" to the state to transform
the political system from within.
Some of the project's 5,000 members want to decriminalize drug use and
prostitution and lift restrictions on gun ownership and gambling, as well.
Benson said he disagrees with some of those goals, but agrees with the Free
Staters on "the important issues."
"What we're standing for is smaller government," he told reporters after his
formal remarks.
"They don't want government on their backs, in their businesses, or in their
private lives."
In his speech, Benson described various initiatives he has gotten funded by
private businesses, as well as two proposed amendments to the state
constitution that he supports.
One, dubbed the Taxpayer Bill of Rights, would limit increases in state
spending to the rate of inflation, adjusted for increases in population. It
also would require a two-thirds vote of the Legislature to increase existing
taxes.
Members of the New Hampshire Liberty Alliance, a new political action committee
formed by members of the Free State Project living in the state, have already
said they probably will support that amendment.
The other proposed constitutional amendment would give the Legislature
exclusive control over state spending on education.
State Supreme Court decisions have found the state constitution includes a
guarantee of public education for every child, paid for by state taxes. Those
decisions led to the statewide property tax for schools.
Benson also called for putting the "passion" back into education, in part by
letting students get credit for educational experiences outside classrooms.
He characterized public education standards as inflexible, based on a model of
learning everything inside four walls, 180 days a year, six hours a day.
"Why do we make someone like my daughter, who's trying out for the Olympics,
take gym class, too?" he said, to vigorous applause.
Kelton Baker, president of the Free State Project, presented Benson with a
stuffed toy porcupine – the movement's mascot – after his speech.
"We're very happy and very excited about our work in the state of New
Hampshire," he said. "And we're very happy to have a governor who supports us."
More media articles about the FSP
These media articles are maintained on a non-commercial basis by
The Free State Project,
a non-profit organization, for historical, educational, scholarship,
and research purposes. (For information regarding "Fair Use", see
US Code Title 17,
Chapter 1, Section 107).
We Made the Move! – Denise
Greetings and salutations! :-) (anyone who knows me knows I'm not really
that formal in person!)
I was a *really* early mover. (I have been in NH for just over a year now).
I had signed a lease to move to NH from MA in August 2003, mailed my ballot in,
and moved into my new apartment. I had been considering moving North for some
time, and with starting graduate school last year, I needed to not be paying
$1300/mo + utilities anymore. Besides I like the liberty minded independent
streak in the whole state. (Just look at how many vanity plates are out there
on NH roads. Freedom of expression is certainly alive in that way up here!)
I am currently working in MA, and living in Southern NH. I expect to change
jobs within the next year, but right now I am biding my time while pulling
together funding to purchase a small camp. I will eventually rebuild it, in
order to make it affordable for me to own my own home.
Some people complain about the high property tax rates up here. But
considering the average cost of the homes themselves here, compared with living
in a major metro area such as Boston/NYC/DC as I was, the amount spent in taxes
is much lower, as the housing prices are lower for much nicer homes. As a
comparison, my parents live in northern NJ. When I told them what the annual
taxes were on a home of the same selling price as their home might go for, they
were amazed how much less per year they might pay in NH, for a home of similar
size but including a nice amount of acreage near Concord, and are seriously
considering moving up to retire. And as more freestaters move up here, we
should all join the NH taxpayer association (as all local New Hampshire-ites
should!) in order to work on reducing the rates even more, allowing us to
influence how our money will be spent in our communities, and attempt to move
more toward a smaller government.
In any case, if a single woman can make it work to move up here, and be
considering purchasing a home, I think most anyone can.
I hope my little note is useful to some, and I am on the local porcupine
list (ladypantherrr) if anyone would like to ask me more.
- Denise, Nashua area
Back to We Made the Move!
Taxation
Coalition of NH Taxpayers
The Patriot Network - Defending
the U.S. Constitution through the Tax Freedom Movement. "Taxes are Revolting
... Why Aren't You?"
Note to Links participants - if you feel your link has been improperly
categorized, please email us at
info@freestateproject.org. Thank you!
Killington Ads
This "shadow ad" campaign consists of three, half-page, week-long ads in the
Mountain Times newspaper, in
Killington VT.
The issue revolves around Killington's threat to secede to New Hampshire,
due to the high taxes in Vermont. See related news stories in:
CNN,
Boston Globe, and
Newsday.
These ads welcome Killington to join the Free State Project in New
Hampshire!
Thanks to FSP Advertising Coordinator, Amy Knickerbocker.
[Other Advertising]
Killington TV ad
The Free State Project begins our first TV advertising
This TV ad is about the high taxes in Killington, VT (paid to the VT
state capital of Montpelier) and suggests viewers consider joining the FSP.
The ad aired over 30 times during the week of 2/26/04 - 3/1/04 on TV
stations Channel 31 WNNE (W. NH and E. VT) and Channel 5 (W. Vt and E. NY).
Ad placements included the Noon and 5 pm news programs, the Today Show, Jay
Leno, Conan O'Brien, Saturday Night Live, Eyewitness News for Kids, and a few
other programs.
The ad was written by FSP members Justin Somma and James
Maynard, and stars James as the street huckster, Justin as the person who
loses $19, and Pat (James' girlfriend) as the onlooker.
The ad is available here as a Windows Media (WMV) file, in 3 flavors. (You
will probably need to download the file, and then play it with an appropriate
viewer).
And here is a short news story about the making of the above ad:
[Other Advertising]
Participants
Facebook
YouTube
Twitter
LinkedIn