Governor Hassan's Veto Message Regarding HB 550

Statement

Governor Maggie Hassan released the following message after vetoing HB 550:

"By the authority vested in me, pursuant to part II, Article 44 of the New Hampshire Constitution, on July 20, 2015, I have vetoed House Bill 550, relative to administration of the tobacco tax and relative to the sale or exchange of an interest in a business organization under the business profits tax.

"Like many others, I am disturbed by the process that brought this bill to my desk. It was passed at the last moment, with no public hearing before the vote. That defective process has understandably raised concerns among members of the legislature and the public. However, I remain open to considering legislation similar to House Bill 550 as part of a larger budget agreement if this tax law change it proposes is paid for.

"New Hampshire's absence of a sales or income tax has long served to our state's advantage in attracting businesses and people to our state. It has, however, also led to the development of some areas of our tax code that are unique, which can at times be confusing to outside observers. I have heard from a number of businesses that New Hampshire should work to mitigate the impact of such provisions, particularly those that House Bill 550 seeks to address, because at times these provisions can hinder capital investment in New Hampshire companies. I remain willing and open to work in a bipartisan manner to address this concern.

"House Bill 550 also suffers from the same problem as the budget that I recently vetoed. It encompasses a significant tax cut that will impact this budget and future budgets without addressing how New Hampshire will pay for it. Cutting taxes without offsetting the loss in revenue will jeopardize our state's ability to invest in the priorities that are critical to our state's families, businesses and our future in the 21st century innovation economy. Many of the same businesses who have expressed support for legislation similar to House Bill 550 have also raised concerns about New Hampshire losing the ability to support the critical economic priorities necessary to keep our state competitive, priorities such as affordable higher education, modern and safe transportation, accessible health care, and combating the substance abuse crisis.

"As long as the tax cut House Bill 550 contemplates is paid for, I am willing to address the tax relief it proposes, as well as the larger issue of business tax reductions, in a compromise budget that ensures that we make these reductions in a way that does not jeopardize our state's economic priorities and future.

"It is my continued hope that legislative leaders will promptly return to the table and negotiate in good faith a bipartisan budget compromise, so that we can move forward and address the issues of House Bill 550, as well as the other critical issues facing our state.

"In the meantime, however, we cannot continue to enact business tax reductions without transparently and honestly paying for them in budget. For this reason, I have vetoed HB 550."

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