Concord Monitor- "'Third way' would tax refinancing"

The Concord Monitor puts Norma Love's AP piece on the front page describing Governor John Lynch's search for new taxes to balance the state budget:

Lynch said the alternative package would include expanding a tax on property sales to include refinancing mortgages and closing a loophole affecting limited liability companies. He said his revenue estimate assumes the two sides will agree on the spending levels under discussion.

They have until Thursday to agree on a compromise budget for the two fiscal years beginning July 1. Debate focuses on $3.2 billion supported by general state taxes. The total budget is expected to be closer to $11.6 billion when federal and other money is included.

The Lynch Mortgage Tax would expand the Real Estate Transfer Tax to include anytime a homeowner refinances, even if there's no real estate transfer to be taxed. This would make refinancing more expensive, and thus limit the opportunities for homeowners to save money when mortgage rates drop.

The Lynch Small Business Tax would take money from small businesses that are too small to get hit by the existing business taxes in New Hampshire. Now wouldn't seem to be the best time to force the housing sector and small business community to fork over more money, but the alternative is limiting spending increases in Concord.