{"id":5712,"date":"2012-02-01T11:33:13","date_gmt":"2012-02-01T16:33:13","guid":{"rendered":"http:\/\/stateimpact.npr.org\/new-hampshire\/?p=5712"},"modified":"2012-02-01T11:33:40","modified_gmt":"2012-02-01T16:33:40","slug":"why-the-telephone-pole-tax-matters","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/new-hampshire\/2012\/02\/01\/why-the-telephone-pole-tax-matters\/","title":{"rendered":"Why The Phone Pole Tax Matters"},"content":{"rendered":"<div id=\"attachment_5716\"  class=\"wp-caption module image right\" style=\"max-width: 300px;\"><a class=\"fancybox\" title=\"We'll explain why an obscure property tax matters\" href=\"http:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/4969605252_5f5b90765a.jpg\" rel=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-5716\" title=\"Telephone\" src=\"http:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/4969605252_5f5b90765a-300x300.jpg\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/4969605252_5f5b90765a-300x300.jpg 300w, https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/4969605252_5f5b90765a-150x150.jpg 150w, https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/4969605252_5f5b90765a-140x140.jpg 140w, https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/4969605252_5f5b90765a-60x60.jpg 60w, https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/4969605252_5f5b90765a-220x220.jpg 220w, https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/4969605252_5f5b90765a-100x100.jpg 100w, https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/4969605252_5f5b90765a.jpg 500w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><p class=\"wp-media-credit\">Trace Meek \/ Flickr<\/p><p class=\"wp-caption-text\">We&#39;ll explain why an obscure property tax matters<\/p><\/div>\n<p>We&#8217;ll admit it: The telephone pole property tax sounds like a dry topic for the <a title=\"The Ultimate Economic Guide To The 2012 NH Legislative Session\" href=\"http:\/\/stateimpact.npr.org\/new-hampshire\/tag\/nh-legislature-2012\/\" target=\"_blank\">2012 Legislative session<\/a> at first glance.<\/p>\n<p>And at second glance, for that matter.<\/p>\n<p>But fortunately for us, <a title=\"Fight brews in N.H. over pole tax\" href=\"http:\/\/www.eagletribune.com\/newhampshire\/x1296876846\/Fight-brews-in-N-H-over-pole-tax\" target=\"_blank\">John Toole of the <em>Eagle-Tribune<\/em> took a third look<\/a>, rustled up some sources, facts, and stats, and managed to make the story not only interesting, but also compelling.\u00a0 We highly recommend you check out his article.<\/p>\n<p>But if you don&#8217;t have time (or need a bit of convincing), here&#8217;s the backstory in a nutshell:\u00a0 Until two years ago, it was state law that municipalities couldn&#8217;t charge telecoms property taxes for phone poles.\u00a0 When the legislature lifted the exemption, the telecoms objected on the grounds that customers&#8217; bills would go up.\u00a0 (In fact, the <a title=\"New Hampshire Public Utilities Commission\" href=\"http:\/\/www.puc.nh.gov\/\" target=\"_blank\">Public Utilities Commission<\/a> allowed <a title=\"Fairpoint Communications\" href=\"http:\/\/www.fairpoint.com\/residential\/\" target=\"_blank\">Fairpoint Communications<\/a> to at least temporarily issue a surcharge on phone bills to off-set the newly reinstated property tax.)<!--more--><\/p>\n<p>In short, the phone company wants its tax-free phone poles back.<\/p>\n<p>And they might just get them if <a title=\"HB 1305\" href=\"http:\/\/www.gencourt.state.nh.us\/legislation\/2012\/hb1305_i.html\" target=\"_blank\">HB 1305<\/a> passes the legislature.<\/p>\n<p><div class=\"related-content alignleft\"><h4 class=\"related-header\">Related<\/h4><div class=\"links\"><h5>Posts<\/h5><ul><li class=\"link\"><a href=\"http:\/\/stateimpact.npr.org\/new-hampshire\/2012\/01\/31\/economic-themes-dominate-nh-state-of-the-state-address\/\">Economic Themes Dominate NH State Of The State Address<\/a><\/li><li class=\"link\"><a href=\"http:\/\/stateimpact.npr.org\/new-hampshire\/2011\/12\/14\/economics-and-politics-clash-over-nh-tax-revenue-forecast\/\">Economics And Politics Clash Over NH Tax Revenue Forecast<\/a><\/li><li class=\"link\"><a href=\"http:\/\/stateimpact.npr.org\/new-hampshire\/2011\/10\/31\/is-new-hampshire-really-as-anti-tax-as-its-cracked-up-to-be\/\">Is New Hampshire Really As Anti-Tax As It\u2019s Cracked Up To\u00a0Be?<\/a><\/li><\/ul><\/div><div class=\"topics\"><h5>Topics<\/h5><p class=\"topic\"><img class=\"alignleft\" src=\"http:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/01\/735410952_0a914f212e1-60x60.jpg\" height=\"60\" width=\"60\" \/><a href=\"http:\/\/stateimpact.npr.org\/new-hampshire\/topic\/nh-legislature-2012\/\">The Ultimate Economic Guide To The 2012 NH Legislative Session<\/a><\/p><p class=\"topic\"><img class=\"alignleft\" src=\"http:\/\/stateimpact.npr.org\/new-hampshire\/files\/2011\/08\/6355404323_cf97f9c58e-60x60.jpg\" height=\"60\" width=\"60\" \/><a href=\"http:\/\/stateimpact.npr.org\/new-hampshire\/topic\/taxes\/\">The Essential Guide To New Hampshire State\u00a0Taxes<\/a><\/p><\/div><\/div>So unsurprisingly, the main players in this tax drama are the municipalities, by way of the <a title=\"New Hampshire Municipal Association\" href=\"http:\/\/www.nhlgc.org\/nhma\/aboutnhma.asp\" target=\"_blank\">New Hampshire Municipal Association<\/a>, and the telecoms.\u00a0 Among the town and city arguments for the taxes, Toole writes:<\/p>\n<blockquote><p>&#8220;Members [of the Municipal Association] dismiss the proposed exemption \u2014 pending before the Legislature \u2014 as a corporate subsidy underwritten by other property taxpayers.<\/p>\n<p>&#8220;It is not the duty of municipalities and local taxpayers to rescue the telephone companies,&#8221; the New Hampshire Municipal Association said in a statement&#8230;<\/p>\n<p>The Legislature let the tax break lapse two years ago amid criticism the phone companies had an unfair advantage over other taxpayers.<\/p>\n<p>No other business gets such a tax break, they all pay property taxes, the municipal association said.&#8221;<\/p><\/blockquote>\n<p>Meanwhile, Toole notes the telecom argument:<\/p>\n<blockquote><p>&#8220;&#8216;People have short memories,&#8217; Pat McHugh, New Hampshire president for FairPoint Communications, said yesterday following a legislative hearing on House Bill 1305.<\/p>\n<p>The exemption came out of state tax reform in the 1990s, when lawmakers implemented a communications services tax to capture revenue from emerging wireless telecommunication businesses. They decided the pole tax amounted to &#8220;double taxation&#8221; and was unfair, he said&#8230;<\/p>\n<p>The pole tax isn&#8217;t small.<\/p>\n<p>&#8216;We were calculating our potential exposure at $6.6 million,&#8217; McHugh said of FairPoint.<\/p>\n<p>That&#8217;s more than the $1.6 million the company pays in taxes for buildings and other property it owns, he said.&#8221;<\/p><\/blockquote>\n<p>Here&#8217;s why it matters to the average person with a traditional (non-cable) phone bill: Fairpoint isn&#8217;t just going to eat the tax.\u00a0 Or at least, it hasn&#8217;t yet.<\/p>\n<blockquote><p>&#8220;Phone customers come into the debate via a new surcharge the Public Utilities Commission recently authorized FairPoint to cover the tax.<\/p>\n<p>The company can collect 99 cents per line, up to 25 lines per account, beginning in April.<\/p>\n<p>It&#8217;s a temporary surcharge, pending more state review.&#8221;<\/p><\/blockquote>\n<p>But even the consumer angle isn&#8217;t free from controversy, as Toole writes:<\/p>\n<blockquote><p>&#8220;&#8216;If the concern is really the size of phone bills, the state could reduce the communications services tax, which produces about $80 million a year, by a tiny percentage,&#8217; the association said. &#8220;That should make everyone happy: no one&#8217;s tax bill increases and no one&#8217;s phone bill increases.'&#8221;<\/p><\/blockquote>\n<p>HB 1305 just got its House committee hearing yesterday.\u00a0 The bill is due out of committee on February 9.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We&#8217;ll admit it: The telephone pole property tax sounds like a dry topic for the 2012 Legislative session at first glance. And at second glance, for that matter. But fortunately for us, John Toole of the Eagle-Tribune took a third look, rustled up some sources, facts, and stats, and managed to make the story not [&hellip;]<\/p>\n","protected":false},"author":28,"featured_media":5716,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[53],"tags":[555,521,515],"acf":[],"_links":{"self":[{"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/posts\/5712"}],"collection":[{"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/users\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/comments?post=5712"}],"version-history":[{"count":14,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/posts\/5712\/revisions"}],"predecessor-version":[{"id":5729,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/posts\/5712\/revisions\/5729"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/media\/5716"}],"wp:attachment":[{"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/media?parent=5712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/categories?post=5712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/tags?post=5712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}