Income Tax Avoided in School Funding

New Hampshire found a way out of its school funding jam without imposing a state income tax. The state approved an $825-million school spending plan that relies primarily on a new, uniform, statewide property tax. The plan allows New Hampshire to maintain its status as one of only two states with no general income tax or sales tax. Alaska is the other. Eight other states have no state income tax. The state’s old method of paying for public schools was ruled unconstitutional because it relied on local property taxes, which vary widely from place to place.