Under Threat of Closings, N.H. Revives Property Tax

By Debra Viadero

With some Granite State districts threatening to shut down schools within weeks, the New Hampshire legislature approved a stopgap measure last week to finance schools for four more years.

New Hampshire's school system was thrown into turmoil last month when the state supreme court declared the state's hard-won school financing plan unconstitutional. The court struck down a statewide property tax enacted in April to pay for the plan because it phased in tax

increases for some towns—usually richer communities—but not for others. ( "N.H. Supreme Court Rejects Funding System," Oct. 27, 1999.)

The legislation approved last week reinstated the controversial property tax, with one small change. Rather than phasing in the tax for entire communities hit hard by tax increases, lawmakers targeted relief to only the poorer property owners in those cities and towns. Under the new plan, for example, families with incomes of less than $50,000 and individuals earning less than $25,000 a year will be eligible for rebates of 33 percent to 100 percent...