Governor Hassan's Veto Message Regarding HB 1208

Statement

Date: May 6, 2016
Location: Concord, NH
Issues: Taxes

Governor Maggie Hassan released the following message after today vetoing House Bill 1208:

"By the authority vested in me, pursuant to part II, Article 44 of the New Hampshire Constitution, on May 6, 2016, I have vetoed House Bill 1208, relative to administration of the tobacco tax.

"This bill makes technical changes to the tobacco tax laws, as administered by the Department of Revenue, including changing and adding certain definitions and removing references to metering machines. It also clarifies activities that constitute unauthorized sales of tobacco products and makes records of tobacco stamps sold and tobacco products distributed required taxpayer records.

"The primary purpose of this bill was to make technical changes at the request of the Department of Revenue Administration, changes that are important for the Department's administration of tax law. But the negatives of one provision outweigh the benefits of these technical changes. House Bill 1208 would also expand the definition of "premium cigar' to include those that wholesale for less than two dollars, thereby exempting low-priced cigars from State tobacco taxes. As a matter of public health and fairness, I have proposed requiring parity for tobacco products during the last two budget cycles, but this bill would move in the opposite direction by expanding the exemption for premium cigars. Because cutting tobacco taxes is detrimental to public health, the American Cancer Society Cancer Action Network opposes measures such as this.

"While this bill makes important clarifying changes to tobacco tax laws for the Department of Revenue Administration, those changes are outweighed by its negative health and fiscal impacts. In the interest of public health and fiscal responsibility for the State's budget, I have vetoed House Bill 1208."


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