Matt McLaughlin’s “three-step plan” to lower property taxes may sound good as a political soundbite, but the math does not hold up which makes higher taxes inevitable. Voters in District 9 deserve numbers that add up without slamming their wallets.
First: The State pays far more for Education Funding than McLaughlin Admits
McLaughlin claims the state pays “around $4,800” per pupil instead of a $7,356 court-ordered floor, leaving a flat $2,500 gap that lands on your property tax bill. NH’s actual funding formula targets aid to communities most in need based on the students receiving free and reduced lunch, special education and students who speak English as a second language. Average per pupil education funding in NH is $7132 and total funding exceeds $1 billion — a very different picture than the flat $4,800 figure he’s discussing.
Second: McLauglin’s Math Does Not Add Up
He claims raising business taxes, repealing educational choice for at risk students and legalizing marijuana will fund the court mandate which costs $7356 per student or $536 million statewide. He believes that business tax hikes could raise $100 million annually — but only if tax hikes don’t cause business slowdown. Repealing educational choice could produce another $50 million. Marijuana revenue at best will be small. Even marijuana proponents estimate only $20 million in annual revenue. So, McLaughlin’s plan is short $375 million.
What does that mean. Simple. McLaughlin can’t fund his plan without new taxes – lots of them. For starters, in 2024 McLaughlin himself proposed quadrupling the state property tax. That’s right – he actually proposed that – and it means higher property taxes. McLaughlin’s plan is similar to a plan proposed on the State House Steps that included a new State Home Owner Tax on top of local property taxes. That Home Owner Tax could mean $1800 – $2000 additional tax on a home of median value in NH. And let’s not forget that Home Owner Tax was coupled with a 3% income tax. A $375 million funding hole leads only one way – to the Home Owner / Income tax proposed on the State House steps.
Rest assured, I do not support a new Homeowner Tax or an Income Tax.
Third: Matt McLaughlin and I have clear differences
I have actually done something to combat rising property taxes rather than offering plan that doesn’t even add up. My legislation in 2021 that became part of the budget guaranteed towns received 30% of the Rooms and Meals Tax Revenue. Since then, funding has doubled for towns. The 13 towns in District 9 received $5.7 million this year. I also fought for funding to fix municipal roads and bridges which is $2.8 million for District 9. Lastly funding for public schools has increased $420 million over the last 3 budgets statewide. $47.6 million has gone to schools in District 9 this year. That is a total of $56.1 million for District 9. Furthermore, I will introduce legislation in 2027 to increase the revenue sent to towns from the Rooms and Meals Tax to 40%.
Despite the millions of state funds sent to schools and towns, decisions that are made locally have led to property tax hikes. I support legislation that gives local voters in this November’s election an opportunity to enact tax caps to curb property tax hikes. Education spending has doubled while enrollment has declined over 20% and test scores are flat or declining. I support giving local voters to opportunity to adopt tax caps. Where does Matt McLaughlin stand on this tax payer protection measure?
I believe we need to continue to provide resources to towns and schools without an income tax, sales tax or new homeowner tax. The best way to do that is through a growing economy. But Matt McLaughlin’s plan to raise business taxes undermines NH’s ability to grow, attract and retain jobs. Ten years ago, NH had the third highest business taxes in the nation. As these taxes fell, the economy grew and revenue exceeded expectations by $760 million. McLaughlin wants to return to that third highest in the nation rate. That has adverse consequences as business can leave or expand elsewhere. It’s certainly happening in other high tax states. It can happen here too.
NH has the third lowest overall rate of state and local taxation which includes property taxes according to the Tax Foundation. States around us have both an income and sales tax. They also have higher property taxes than NH.
I will continue to fight for lower property taxes as I have done without leading us to an income tax, a sales tax or new homeowner tax as Matt McLaughlin and his funding shortfall would do.
That is the key difference between us.