This explainer presents both sides based on the measure's text. It does not recommend a vote.
Plain English Summary
This measure would remove the current ban in New Hampshire's constitution that prevents the state legislature from creating an income tax. If passed, it would give lawmakers the ability to consider and potentially enact a state income tax in the future, though it does not automatically create one.
If YES
The legislature would gain the constitutional authority to create a state income tax if they choose to do so
confidence: high
New Hampshire could potentially generate additional revenue for state services and programs through income taxation
confidence: medium
The state would have more flexibility in how it funds government operations and could potentially reduce reliance on property taxes
confidence: medium
New Hampshire's tax structure could become more similar to most other states that have income taxes
confidence: high
If NO
The constitutional ban on state income tax would remain in place, preventing the legislature from creating one
confidence: high
New Hampshire would continue to rely on its current tax system without income tax as a revenue source
confidence: high
The state would maintain its distinction as one of the few states without a broad-based income tax
confidence: high
Future revenue needs would have to be met through other existing tax mechanisms or spending adjustments
confidence: medium
Financial impact
The measure itself has no immediate fiscal impact, as it only removes a constitutional restriction without creating any taxes. Any future financial impact would depend on whether the legislature chooses to enact an income tax and at what rates.
TL;DR
This measure would allow New Hampshire's legislature to create a state income tax by removing the current constitutional ban, though it doesn't automatically create such a tax.
Limitations
Based on measure title only — full text analysis may reveal additional details