NH gov signs border sales tax protection bill

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New Hampshire Gov. John Lynch has signed a bill intending to protect retailers from becoming tax collectors for other states.

New Hampshire doesn’t have a general sales tax, a selling point it uses to attract out-of-state retail dollars. Lynch said Thursday the new law will protect the state’s businesses and will help to strengthen our its economy.

Retailers wouldn’t have to provide sales information to out-of-state tax collectors. The other state would have to prove a good or service bought in New Hampshire is used, stored or consumed in the other state.

The bill was filed in response to action Massachusetts took against a Connecticut-based tire store chain. Massachusetts attempted to collect $108,000 in "use" taxes from Town Fair Tire for sales it made to Massachusetts customers at its New Hampshire stores.

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