Lottery commission celebrates with "Tax Repeal Tea Party"
CONCORD, N.H. — Starting Monday, New Hampshire residents no longer have to pay taxes on their lottery winnings.
The state imposed a 10 percent tax on gambling winnings over $600 in 2009, but the tax was repealed by the current Legislature under a bill going effect Monday.
Gov. John Lynch last week signed into law the bill repealing the tax, which officials said hurt the racetrack and battered lottery sales after the state enacted it two years ago.
"It was great news," lottery executive director Charlie McIntyre said.
"It was definitely a losing proposition," said House Majority Leader D.J. Bettencourt, R-Salem. "This was hurting our cross-border advantage."
The lottery commission is celebrating with a "Tax Repeal Tea Party" at its headquarters. It's also unveiling a new $10 instant ticket called "$250,000 Tax Free." Federal taxes on the top prize for the game will be paid by the state. The tickets will be available at the lottery commission office Monday, with a buy one, get one free promotion, and then statewide starting June 6.
After the 10 percent state tax was imposed in 2009, lottery officials watched as scratch ticket sales, especially in border community stores, plummeted immediately and continued downward.
Scratch sales were off 5.82 percent statewide last year. "We were down and Massachusetts, Maine and Vermont were all up," McIntyre said. "To me, that was the statistic that was most telling."
McIntyre said the impact was dramatic. "We noticed the drop-off in the border towns specifically," McIntyre said. "All were much worse off."
Scratch sales in Pelham and Salem tumbled 10 percent.
The lottery does big business in Southern New Hampshire. More than $18.3 million in scratch sales and $9.2 million in online or jackpot sales in the last fiscal year.
Because scratch players weren't playing as much, that likely hurt jackpot sales, too. "We have crossover play," McIntyre said. "Someone who buys a scratch ticket often will play Powerball, too."
The lottery wasn't the only operation taking a hit. So was the track.
"We saw about an 8 percent reduction in our overall handle and revenue in the areas of charitable gaming, bingo and racing," Callahan said.
"We had people who packed up and moved away to a more favorable state," Callahan said. "We'll see if it bounces back. I think it will take six months. There's no guarantee, of course."
Players lost to other states may never return, Callahan said.
McIntyre believes lottery winners were carefully watching the repeal developments.
"Our weekly sales report showed cashings were down dramatically," McIntyre said. "I'm sure people were holding off."
Bettencourt said the House, Senate and governor all agreed to repeal the tax. He was critical of the governor, though. "He should have been proud to do this," Bettencourt said. "This helps Salem and Southern New Hampshire."
Reaction from lottery players was positive.
"We can use all the little breaks we can get now," said Nancy Kelley of Sandown. "You can take that 10 percent and put it in your gas tank."
"That's cool," said Renee Ferland, also of Sandown. "Ten percent? That's an awful lot of money you have to pay in taxes. Not to mention what you spend for tickets."
Jim Hennessey of Northwood said he would have been surprised to win and get hit with the tax.
"If I won $100 million and they took 10 percent, that would be quite a bit," Hennessey said. "I would have asked, 'What did they do?"'
Leon Vitale of Hudson said he never knew about the tax. "I just give them my dollars every week and pray like everybody else," Vitale said.
The tax on winnings was just "ripping them off even more," Vitale said of lottery players. "They take enough out of us with regular taxes."
The repeal didn't matter to Terri Godfrey of Windham because she said the lottery helps fund education in New Hampshire. "If I was lucky enough to win $1 million, and got to keep $900,000, I wouldn't mind $100,000 going toward something good," Godfrey said. [Editor: Of course, Godfrey left out the other $250,000 that the federal government would take, leaving her with only $650,000, instead of $750,000 she would now get without the 10% state tax.]
Godfrey did pause to wonder about the consequences of repeal. "Where is the money going to come from now?" Godfrey asked. "Are they going to start taxing my car more?" [Editor: No, they would sell many more lottery tickets, bringing in even more revenue than they did with the 10% tax.]
Jackie Jendrick of Salem said the repeal made no difference to her. "I would have had no problem paying that tax," Jendrick said.
Keith Wilhelm of Windham was pleased to hear a tax had been repealed in New Hampshire. "That's always a good idea," Wilhelm said. "How can that be a bad thing?"
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I've always kind of liked New Hampshire.
It just got a little better.
There shouldnt be any taxes on the lottery to begin with. you practically pay a hidden tax by playing anyway why you got to pay more if you win ??
LIVE FREE OR DIE!
Hope this catches on. Kind of apropos as NH started state lotteries this time around.
Illinois....federal government, are you listening?!!! Oops I forgot that we have a tax and spender in both locations....oh well, congrats NH.
Finally nice to see some people in Government who are in step with the times and realize that the citizens are put first. Kudos to the legislature in N.H...!!
wow , just wow. kudos to the state, wonder why? too many people driving over the border to a non taxing state? anyhow i hope sales pixk up for em.
AMEN, Big way to go New Hampshire.
You can drive over the border all you like you still pay taxes in your state of residence. What this article doesnt say is what will be cut to make up the difference which is more the talking point. More than likely education.
By the way, every scratch off should be like this one and note the top prize as an after tax prize.
Kudos to NH but it's too bad that this lesson had to be learned the hard way once again.
Libs always think burdensome and confiscatory taxes are going to raise revenue and once again we see that they're wrong. They usually reduce revenue. Revenue increases when taxes are lowered.
What amazes me though are the dopes who say that they didn't mind paying the extra taxes - as if they think the government is better at handling their money than they are and knows better what to do with it. If those taxes were such a good thing then why don't they voluntarily keep paying them? Why not give extra on tax day? It's perfectly legal. If you think the government needs more money, by all means, give it to them!
Unfortunately, that's not the way the liberal model operates.
When a lib thinks something is a good idea, they want everyone to do it, not just them. They want everyone forced to do it under threat of prosecution and imprisonment under the full force of the law. They love the idea of being under the thumb of government and having the government running every aspect of their lives, including deciding what best to spend their money on.
And therein lies the rub - the rest of us neither want nor need a nanny.
It would be so nice if the libs would take a lesson from this but they won't - they never do. They're notorious for instituting the same failed policies over and over and over. They're oblivious to the fact that they don't work because they want them to work so badly.
So as long as there are dopes that need nannies running their lives we will have to deal with their charges fulfilling their dreams of nannihood through more and more and higher and higher taxes.
Fortunately, the voice of the people was heard in this particular issue because the people were able to vote with their dollars by spending them elsewhere.
And the Almighty Dollar (yours), is all the libs in government care about.
Unbelievable!
You still don't get it, do you?
Nothing is going to be cut because of removing the tax! The tax is what would have caused things to be cut!
Education will get more money now without out the tax!
Why do you people choose and insist on wishful thinking with your insane ideals over reality every time?
Why don't you go to California and join a commune or something, comrade. Then you can live in peace giving everything you own or earn to the group leader and have the security of knowing he will take care of you and tell you what to do and what to think and make all of your decisions from now on. Liberal Nirvana!
After the 10 percent state tax was imposed in 2009, lottery officials watched as scratch ticket sales ... plummeted immediately and continued downward.
Scratch sales were off 5.82 percent statewide last year. "We were down and Massachusetts, Maine and Vermont were all up," McIntyre said. "To me, that was the statistic that was most telling."
The repeal of the tax was not some great moral revelation. The tax cost them revenue. They responded to the only vote a citizen has that counts anymore -- voting where and whether to spend his money. Withholding cash works better than phone calls, marches, or petitions and it can't be countered by subterfuge and force.
glad to see the voters in hampshire have learned a lesson? and sent some decent anti-high tax types to be their Representatives in their state govt for once.
i also agree with rdgrnr about libs. however both parties are to blame for high taxes , just libs take it to the xtreme end of crazy land.
Republicans too, thro Not nearly in the numbers of libs in state and fed govt , Spend money they Don't have and get states in debt, hance needing to Tax stuff to pay it off
we just need to take all their credit card powers away and say you Can't spend what you Don't have in first place
, as both party have been acting like careless 5 year olds with parents credit cards in a toys r us super store with. in both state and fed govt level.
but the republicans are at lest trying to do damage control atfer the house is already on fire with debt, a little late to play fire fighters don't you think
http://www.usdebtclock.org/state-debt-clocks/state-of-new-hampshire-debt-clock.html
show them as spending more then their making in nh,
Ether way, a tax on lottery winnings is very stupid as it gets. we already Give the money to them, knowing odds are agiant us and where helping their state fund whatever it is their lottery funding going to. and then they have the balls to tax us atfer we win, glad they seen it was a stupid idea for once and changed it, thank god for people using their brains for once.
sense the fed don't get a cut, they already steal up to 35% of it just be jerks. last thing people need is a state taxing it also.
ether way, gl to you people in new hampshire keeping your state reps on right path to less tax's
i also like what time count said
voting where and whether to spend his money. Withholding cash works better than phone calls, marches, or petitions and it can't be countered by subterfuge and force.
your right, that's why if we made govt taxes a thing of the past, and made the Govt funded like a charity, their 100% donate only
then when ever the govt does something wrong, people just stop donateing their money, and govt Forced to keep us happy and don't piss us off, or no money, then they really work for us,
the sec they can force us to pay them any amount they wish, then their in charge and they don't give a rats beep about us some times
, they pretend to give a <snip> come voting time ofc , but history shows they glady break a promise and screw the very people who put them in office
if given a chance to get away with it. they glady take it, no all of them, but a lot of them do that.
but if we made ever thing donation only, then you would Not have food stamps, no more govt free bes, No thats what food banks, etc is for. you see if you want to help Feed people, Do it your bloody self, taxes are for stupid people . donation based govt is only smart govt , as it keeps us in power, we control the money, and then their Forced to obey our wish's. or majority of their funding comes form at lest
in this case, the lottery players speaked with their money and thank god they got rid of the tax, as time said, govt listins to money
'bout time!
They did this some time ago in PA!
The proof is in the pudding. I hope Tennessee can follow suit but something tells me that just aint gonna happen!
I said it in this very website about 2 years ago. I remember saying the NH lottery sales would plummet so much that they would have to remove the taxes. Hahahaha the people just won and the politicians lost.
I cant wait for Massachusetts people win like their neighbors to the north.
Isn't that the trade off? The more people play since there are no taxes the more that goes to education?
Exactly, but the way their brains are wired they can't comprehend that.
And the ones that do comprehend it won't accept it because it doesn't jibe with what they think should work, no matter how many times they are proven wrong.
If anyone wants a peek pack at who said what, when this tax was first passed ...
New Hampshire crushes lottery winners with new 10% tax
https://www.lotterypost.com/news/196385
So I am wondering how can an individual citizen of the United States can take a stand against paying the penalty for not having health insurance when that diabolical health care reform law kicks into full gear. Will we see good, honest Americans being sent to prison for refusing to pay the penalty in the taxes to the IRS? Don't think that will happen? Just ask Wesley Snipes, Jim Thorpe, and that first Survivor winner. You only don't go to jail if you are a politician (just ask Charlie Rangel and a host of "the man, the myth, the messiah" nominees who happened to not have paid their taxes until after the fact was discovered). So I guess the only way to circumvent this health care reform law if A) "the man, the myth, the messiah" is not defeated in the next election and B) one half of Congress remains in Demon-crat hands is to leave the country....darnit, I think I still would have to pay taxes even if I earned none of that income in the US. So I guess the only solution is to vote "the man" out of office so that health care reform doesn't become legendary.
Well, I don't want to get too far off-topic, but I'll just say that 1) laws can be changed and 2) a good number of companies have already gotten health-care waivers.
It's not really a Dem vs. Repub issue, although they pretend it is. What one party steals from you (like, say, the Bill of Rights), the other party will keep once they get in to power.
tks for the search time treat. i do recall the post 2 years ago but didt remeber commenting. heheh but the no speeding protest campaign i was promoting sounds like something i would have said lol. i still bang on about that on occasion.
I remember reading that post on LotteryPost...now I am sure those in states with RNG are hoping for their perspective lottery heads to come to their senses and bring back the real ball drawings....can I get an AMEN from TN and IN (to name a few)?!!!
Amen, brother!
It is a WONDERFUL thing that New Hampshire also decided to charge ZERO state taxes for lottery winnings!
I wish that my residence state, Illinois, would follow suit and thus charge ZERO state taxes for lottery winnings (sadly, all of our neighboring states also charge state taxes). After all, each state's FIRST round of taxes were collected when I bought each lottery ticket from a lottery retailer. Rather, my residence state, Illinois, did the opposite by INCREASING the state taxes, by an additional 2%, for lottery win monies (and all other incomes it's residents receive) at the beginning of this year!
NH government got greedy and now can't hide from the foolish mistake. In 2009 they went from having zero(the lowest) gambling tax to 10%(one of the highest). This is a state that has no income tax. Now if they would have just put say a 2% tax on winnings, they probably would have got away with it with very little damage. They went all in and it backfired.
Ole Steve Player must be drooling bigtime his home state , he or the corporation win lots of prizes over in NH. 'Wish NY would do this but with Cuomo in charge it will never happen this state is toooo money hungry and screw the players day after day. Has anyone tried to play the number 999 lately the lottery caps the betting activity at a $5 million payout in NY it sucks plus they should pay what the odds are $1000 for a STR8 hit ........anyway best of luck to those lucky players in NH. Go Yankees!!!
MINK