The current temporary system relies on a statewide property tax for more than half its funding. Purchasers would pay at point of sale. The rate would depend on what is exempt. Typical exemptions include groceries and clothing. These two business taxes are similar to state's existing business enterprise tax.
Capital gains tax on profits made on investments.
The funding crisis began in 1997 when the state Supreme Court said relying on widely varying local property taxes to pay for schools was unfair to poor communities. It took layoff notices to teachers and the threat of school closings before legislators agreed on a way to pay for schools in 1999. But the state Supreme Court threw out the plan, prompting lawmakers to pass an interim system anchored by the unpopular statewide property tax. The temporary solution expires in January 2003. On Thursday, Shaheen stressed the need to enact a permanent solution by July, when the new budget takes effect.