by Andy Sanborn
Yes, they STILL have not repealed the LLC Income tax, and yet, it gets worse…
Tonight the State Senate passed our first ever Locally Imposed Sales Tax, targeted solely against restaurants and lodging operations and their patrons. This is a disastrous move that will pit local community against local community, and negatively affect the recreation and enjoyment of our State.
Despite the roar of ordinary working families, pleading to our legislators to be responsible and cut back our bloated, ever expanding budget to match a lower level of income everyone in the state is experiencing, they have again, attacked our pocket books, our businesses and our way of life.
Just as the attempt to create a Tax on the personal incomes of just LLC small business owners, the legislature has now authorized each and every town and city in the State of NH to impose an unlimited new tax rate against every single person who dines out, stays at a hotel or B&B and even rents a car. This new tax, on top of the 12% increase enacted last year to the Rooms and Meals tax presently in place, will allow any city or town, to enact a new, additional tax, with no limit on the percentage rate.
The travel and tourism industry in New Hampshire is our largest industry. It employs more than 65,000 people. Unfortunately it is also suffering from one of the largest declines as discretionary income has dried up. 53,000 friends and neighbors unemployed and hundreds or thousands under employed. A night out for dinner or a trip to the beach has gone from a great idea, to a luxury most can’t afford. As seen by the constantly under budget, lower than expected tax revenue from the Restaurant and Lodging industry, the tourism industry is seeing the most difficult times in this State’s history.
The last thing in the world our State should be doing is to encourage each local community to establish and implement a town by town unlimited sales tax. What will be next? A town by town gas tax? A town toll booth? Town by town taxes on phone bills, electric bills and home heating oil? How long will it be before we see a local grocery tax?
The definition of insanity is performing the same task repeatedly and expecting a different result. During the past 4 years we have seen an imposition of new, repeated and higher taxes on virtually every facet of our lives. Concurrently revenue of those same services has declined in every single case, where taxes were increased.
Implementation of this new locally generated tax will not only place an uncompetitive financial burden on individual operators separated by town lines, which in some cases will be inches apart, but will make the cost of each and every meal, room and trip to the beach or ski area, uncontrollably more expensive.
This is about protecting our small business community and every single person in New Hampshire. But, for the sake of our economic future, when is enough enough? Now, more than ever we need to see a wholesale change in the legislative leadership of New Hampshire. It’s time to remove these legislators whose only answer to our State’s challenges is to raise or create taxes. If you are an ordinary working resident or small business owner, I call on each and every one of you to become active, get involved and restore our traditional New Hampshire values of limited Government and low taxes.
I believe those in control of Concord today do not represent or are trying to protect us as small business owners, ordinary working families and taxpayers.
If anyone can make it, the New Hampshire Lodging and Restaurant Association and other business trade associations are holding a press conference on Monday morning at 10:00 AM in the lobby of the Legislative Office Building (the building directly behind the State Capitol) to speak out against this damaging legislation. Please make every effort to be there and show your support.