Do Governor and Speaker Believe State is Entitled to All Tax-Exempt Surpluses?
Concord- Following the news yesterdaythat Justice Kathleen McGuirehad ruled against the state raiding of the JUA funds, both Governor John Lynch and Speaker Terie Norelli issued the following (separate) statements:
Gov. Lynch: These surplus funds belong to the citizens of NewHampshire, who created the Joint Underwriting Association and gave ittax-exempt status."
Speaker Norelli: "In establishing the Joint Underwriters Authority and itstax-exempt status, the legislature certainly did not intend for the taxpayers to subsidize a windfall for doctors."
Yet in her ruling, Justice McGuire stated, "...the Court finds that the JUA is not a part of state government..."
Both the Governor and Speaker's comments raise asignificant concern that they each believe that if an organization has a tax-exempt status, the state has the right to 'steal' any surplus balance that they own. This belief would be of concern to any tax-exempt non-profit, such as a church or charitable organization with "excess" money in the bank.
Kevin Smith, Director of CPR-Action, commented, "It is our hope that the Governor and Speaker will clarify their remarks so that we can be assured that they dohave any intention of raiding tax-exempt organizations to pay for their budget."