NH Prevails in Fight Against Feds Over Cutting Taxes

Concord, NH – Today, Governor Chris Sununu and Attorney General John Formella announced that the State of New Hampshire, along with twelve other states, has prevailed in preserving tax cuts for their citizens. Late Monday, the United States District Court for the Northern District of Alabama issued an order granting the plaintiff states’ request for a permanent injunction against the Democrats’ ARPA Tax Mandate. The federal government will therefore be barred from enforcing the ARPA Tax Mandate against the State of New Hampshire and the other twelve plaintiff states.

“This ruling is a win for the taxpayers of New Hampshire,” said Governor Chris Sununu. “Despite threats from Washington, we continued to cut taxes — and won. This decisive ruling shows NH will continue to chart our own path and will not be dictated by the mandates coming out of Washington.”

“The ARPA Tax Mandate was an improper and unconstitutional intrusion on the rights of New Hampshire’s elected policymakers to make decisions regarding State tax policy,” said Attorney General John Formella. “We are grateful that the Court agreed with our position and that the State of New Hampshire’s sovereignty will remain protected.”

On March 31, 2021, the State of New Hampshire joined with the states of West Virginia, Alabama, Arkansas, Alaska, Florida, Iowa, Kansas, Montana, Oklahoma, South Carolina, South Dakota, and Utah to bring this action to invalidate and enjoin a provision of the American Rescue Plan Act of 2021 (ARPA) that would have prevented the plaintiff states from using ARPA funds to either directly or indirectly offset a reduction in net tax revenue resulting from state tax cuts. This provision put the plaintiff states at risk of having ARPA money recouped by the federal government due to their enactment of state tax cuts.

Note: A copy of the order can be found here.