09/26/2025
Here is a letter to the editor (or maybe an op-ed, since it is over 250 words) submitted yesterday to my local newspaper, the Dover NH Foster's Daily Democrat (& the virtually identical Portsmouth Herald.)
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My fellow members of the New Hampshire General Court are very proud of the fact that our state does not have a broad-based sales tax. We do have the 8.5% Meals & Rooms (Rental) Tax which functions very much like a sales tax, arguably because it is in fact a sales tax. But, even though it covers a wide variety of services, our M&R Tax is not a broad-based sales tax.
Supposedly, our lack of a broad-based sales tax is a big part of our "New Hampshire Advantage," because of all the retailers who choose to locate on our side of the state line to avoid taxation. Certainly, our state's economy does have a vibrant retail sector, but the same can be said for our three neighboring states, even though Vermont, Massachusetts and Maine all have broad-based sales taxes.
This brings me to Ian Lenahan's story about the impending demolition of the Fox Run Mall ("Mall at Fox Run shop owners seek new homes before expected demolition: 'I love it here'", September 23). Two of the mall's remaining tenants told your reporter Ian Lenahan that they were planning to move to Kittery, which makes sense, since it is one of New England's most popular shopping destinations. Kittery is, ironically, located in Maine, which has a 5.5% broad-based sales tax. But, it is nevertheless still a great place to locate a retail business. Go figure!
I myself do a lot of my clothes shopping in Kittery at the "outlet malls." Yes, I do pay a little sales tax, but the stores in Kittery have what I want, at prices which are still relatively reasonable even with the added sales tax. And, for whatever it's worth, many of the employees of those stores commute from New Hampshire, even though Maine has a broad-based income tax.
Finally, I should mention that there are over 1,000 bills which will be taken up by the New Hampshire legislature in 2026, but not one of them is a broad-based sales or income tax bill.
Thanks,
NH State Rep. Timothy Horrigan (Durham)