CONCORD - Governor Kelly Ayotte signed HB 155 into law this week. Democrats contend the measure opens the door to further corporate tax reductions and shifts about $26 million annually onto local property taxpayers. She approved 37 other bills and vetoed five more.

HB 155 directs a 0.05 percent Business Enterprise Tax cut whenever state business tax revenue surpasses projections by $100 million, continuing until the rate falls from 0.55 percent to 0.25 percent, according to House Democratic Leader Alexis Simpson of Exeter.

The law prevents any review of property tax relief or the 90 fees raised in the 2025 budget whenever a surplus stems from business tax collections.

Republicans examined the affordability pressures facing working families and concluded the top priority was delivering additional tax relief to large out-of-state corporations, Simpson said. She added that Republicans appear to believe another corporate tax cut for major companies will resonate with voters even as families struggle with basic costs and property taxes continue to climb.

Unpopular Veto

Ayotte vetoed HB 2026, drawing criticism from both parties. The bill addressed the state 10-year transportation improvement plan, toll rate adjustments and periodic reviews for the turnpike system to fund the 2027-2036 plan, and reconstruction of the Gregg Mill Road Bridge in New Boston.

State law requires the Ten-Year Transportation Plan, which is updated every two years. It identifies projects statewide, enables competition for federal funds, and directs state transportation spending.

After the veto, Rep. John Cloutier, D-Claremont, ranking member of the House Public Works and Highways Committee, said the decision places politics above safety and economic progress. He noted the bipartisan plan supplies long-term certainty for road and bridge repairs and infrastructure modernization.

Deputy House Speaker Steven Smith, R-Charlestown, also faulted the veto. He said the plan has long delivered bipartisan investment in roads, bridges, and infrastructure, and rejecting it risks critical projects funded by dedicated turnpike revenues rather than new taxes.

In her veto message, Ayotte stated she does not support raising tolls and will continue focusing on affordability and tourism. The Associated General Contractors of New Hampshire expressed disappointment, warning that the veto creates uncertainty for contractors, communities, and future infrastructure planning.

Sale of Sununu Youth Services Center Proceeds

Ayotte vetoed Senate Bill 481, which would have directed proceeds from the sale of the Sununu Youth Services Center to the general fund instead of the victims settlement fund for claims from those abused as children at the former Youth Development Center in Manchester. She said the budget she signed last year requires those revenues to support the settlement fund.

The governor also vetoed HB 396, which sought to exempt certain in-state meat products from federal inspections; HB 1102, which would have expanded a research and development tax credit while altering state park fees; and HB 1184, which proposed new rules for no-trespass orders on municipal and school property.

She provided detailed explanations for each veto, citing conflicts with federal law, impacts on self-funded parks, and concerns from local officials about workability.

In addition to HB 155, Ayotte signed numerous other measures covering election procedures, health insurance, blockchain use, foster care benefits, solid waste planning, voter audits, banking regulations, and per- and polyfluoroalkyl substances in agriculture, among others.