Prospects for passage of a capital gains tax in New Hampshire appear uncertain, with two key Senate committee chairmen yesterday saying they are opposed to the measure.

“I can only tell you that I have no desire to do a capital gains tax,” Senate Finance Committee Chairman Lou D'Allesandro, a Manchester Democrat, said in a phone interview. “If ever there was not a time for capital gains, it is now.”

Senate Ways and Means Chairman Bob Odell, a Claremont-area Republican, also said he opposes the tax, noting that many retirees move to New Hampshire because of its favorable tax climate for such income. “I think it would be a major change in the public policy we have on taxes,” Odell said. “I think that will get a lot of discussion and debate if it is brought forward. I haven't heard a lot of sentiment in the Senate for that particular tax.”

The Granite State has no broad-based sales or income tax, though interest and dividends above $2,400 for single filers are taxed. And some gains realized through partnerships and corporations are taxed under New Hampshire's 8.5 percent business profits tax.

State Sen. Matthew Houde, a Lebanon-area Democrat, yesterday said he was pleased the state is having “a conversation about all revenue sources,” though stopped short of endorsing any particular proposal pending the unrolling for a formal budget from Senate, which is expected by the end of the month.

The budget passed by the New Hampshire House earlier this spring would create a new 5 percent tax on capital gains of more than $5,000 a year while also effectively raising the exemption for interest and dividends for most taxpayers.

The House budget would also impose an 8 percent tax on estates worth more than $2 million, with exemptions for spouses and protections for some family farms.

House budget writers have estimated the capital gains tax would bring in $50 million a year during the economic downturn, and $75 million in the upcoming biennium, the difference coming from the fact that the tax wouldn't apply until the second half of fiscal year 2010.

But D'Allesandro questioned those estimates, citing the sluggish economy.

“I just don't see that,” he said. “They wouldn't be there to pay it, that's my concern.”

(The Vermont Senate also proposed closing a loophole that exempts 40 percent of capital gains from state taxes with a $5,000 exemption as well.)

New Hampshire Gov. John Lynch, a Democrat, also has been lukewarm to the capital gains and estate tax proposals.

“The governor did not includes these in his budget and he prefers the revenue proposal he included in his budget,” Lynch spokesman Colin Manning said in an e-mail yesterday.

Lynch has called for a $10 surcharge on vehicle registrations to boost the highway fund, while the House favored a 15-cent increase in the gas tax over the next three years; Lynch also wants to lease land near state liquor stores and take other steps to increase liquor revenue, among other measures.

Odell said new revenue estimates yesterday found that Lynch's liquor commission modernization might bring in $20 million less than initially projected over the next two years. Similarly, lottery estimates were also down about $10 million for the upcoming biennium.

But estimates for business taxes were holding relatively steady from earlier projections, Odell said.

“Given the stimulus money and some of these other things that are going on, I'm not sure we will need a major new source of revenue,” Odell said.

D'Allesandro has long-favored expanding gambling revenue by allowing thousands of slot machines in two racetracks in southern New Hampshire, which he said could bring in a $70 million licensing fee and then up to $120 million annually in revenue.

“I look at it as economic recovery and job creation,” said D'Allesandro, noting that construction jobs would also result for the gaming facilities.

Expanded gaming has been opposed by many other lawmakers, including several in the Upper Valley, and Lynch has also been wary of expanded gambling.

Houde expressed interest in the gas tax increase, saying it would address long-term investment needs in New Hampshire's roads and bridges.

“My sense is that our infrastructure hasn't been adequately funded, so that making the repairs necessary, taking care of the infrastructure, just absolutely needs attention right now,” Houde said.

Odell said he favored Lynch's car-registration surcharge, citing the financial insecurity of many residents who might be hit harder by a gas tax increase.

“Certainly I am very open to a discussion after we turn the corner about the gas tax, and how big it should be, but now, I'm reluctant to go down that road, so to speak,” Odell said.

John P. Gregg can be reached at jgregg@vnews.com or (603) 727-3213.