precinct subject to a higher tax to fund local projects. The school district(s). The county. A statewide property tax. New Hampshire instituted this tax in 2002, in response to court-ordered statewide equalization of education funding (see Claremont suits). The tax, which was lower than the amount previously assessed by school districts, is in theory returned to the school districts, though adjustments by the state legislature create "donor towns" and "recipient towns." The appraisal of a property is controversial, as it directly affects the property tax. The state requires town-wide reappraisal at least every five years, typically conducted by professional consultants, to ensure that the valuations follow gradual changes in the real estate market and the general price of real estate. The municipality allows a property owner to challenge a reassessment. If assessments in a town were uniformly increased by 10%, the millage would decrease by 10% and the tax to be paid would be unchanged, assuming that the money budgeted by the various government bodies were unchanged. Even this might be controversial, as the lower millage might eventually be used as an argument for new spending. Separately, the fact that the assessment is an estimate of market value means that it reflects intangible aspects of the property, a phenomenon criticized as the so-called view tax. Budget New Hampshire's operating budget is set on a two-year basis, the latest period, July 1, 2007 through June 30, 2009, being FY (Fiscal Year) 2008 and FY2009. The FY2008 summary is as follows: Taxation New Hampshire does not have a general income tax nor a general sales tax like many other U.S. states. It does have the following taxes: Interest & Dividends Tax - 5% income tax Inheritance and Estate Tax Business Profits Tax Business Enterprise Tax - 0.75% - an income tax on sole proprietors Communications Services Tax Electricity Consumption Tax Meals and Rentals Tax - 9% sales tax on meals, vehicle rentals, and hotel rooms Tobacco Tax Real Estate Transfer Tax Timber Tax Gravel Tax State Education Property Tax Utility Property Tax Local Property Tax Fuel Tax Taxation is one of the more controversial issues in the politics of New Hampshire. External links NH.gov, official state website References New Hampshire