Bill Text: NH SB2 | 2015 | Regular Session | Amended
Bill Title: Reducing the rate of the business enterprise tax.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2015-03-19 - Sen. Bradley Moved Laid on Table, Motion Adopted, Voice Vote; Senate Journal 9 [SB2 Detail]
Download: New_Hampshire-2015-SB2-Amended.html
SB 2-FN-A - AS AMENDED BY THE SENATE
03/05/2015 0493s
2015 SESSION
15-0868
09/10
SENATE BILL 2-FN-A
AN ACT reducing the rate of the business enterprise tax.
SPONSORS: Sen. Sanborn, Dist 9; Sen. Daniels, Dist 11; Sen. Bradley, Dist 3; Sen. Birdsell, Dist 19
This bill reduces the rate of the business enterprise tax over a 3-year period.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/05/2015 0493s
15-0868
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT reducing the rate of the business enterprise tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Business Enterprise Tax; Imposition of Tax; 2015. Amend RSA 77-E:2 to read as follows:
77-E:2 Imposition of Tax. A tax is imposed at the rate of [3/4 of one] .725 percent upon the taxable enterprise value tax base of every business enterprise.
2 Business Enterprise Tax; Imposition of Tax; 2017. Amend RSA 77-E:2 to read as follows:
77-E:2 Imposition of Tax. A tax is imposed at the rate of [.725] .7 percent upon the taxable enterprise value tax base of every business enterprise.
3 Business Enterprise Tax; Imposition of Tax; 2019. Amend RSA 77-E:2 to read as follows:
77-E:2 Imposition of Tax. A tax is imposed at the rate of [.7] .675 percent upon the taxable enterprise value tax base of every business enterprise.
4 Applicability.
I. Section 1 of this act shall apply to taxable periods ending on or after December 31, 2015.
II. Section 2 of this act shall apply to taxable periods ending on or after December 31, 2017.
III. Section 3 of this act shall apply to taxable periods ending on or after December 31, 2019.
5 Effective Date. This act shall take effect July 1, 2015.
LBAO
15-0868
01/13/15
SB 2-FN-A - FISCAL NOTE
AN ACT reducing the rate of the business enterprise tax.
FISCAL IMPACT:
The Department of Revenue Administration states this bill, as introduced, will decrease state general and education trust fund revenue by an indeterminable amount in FY 2016, by $7,590,000 in FY 2017, $15,180,000 in FY 2018, and $22,770,000 in FY 2019. This bill may also increase state expenditures by an indeterminable amount in FY 2016 and each year thereafter. There will be no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department of Revenue Administration states this bill would: reduce the Business Enterprise Tax (BET) rate from 0.75% to 0.725% effective January 1, 2016; reduce the BET rate from 0.725% to 0.7% effective January 1, 2017; and reduce the BET rate from 0.7% to 0.675% effective January 1, 2018. The Department states this bill would reduce state general and education trust fund revenue by an indeterminable amount FY 2016 due to first quarter tax year 2017 estimate payments, and any fiscal year filers with a due date between March 16, 2016 and June 30, 2016. Assuming BET revenue at the FY 2015 estimate of $227,700,000 and a current BET rate of 0.075%, the Department calculates a BET tax base of $30,360,000,000. The Department estimates a decrease in state general and education trust fund revenue in FY 2017 and thereafter as follows –
Fiscal Year Proposed BET Rate Revenue Impact
FY 2017 0.725% $(7,590,000)
FY 2018 0.700% $(15,180,000)
FY 2019 0.675% $(22,770,000)
The Department states this bill would result in additional administrative costs in FY 2016 and each year thereafter. The Department states the change would require the Department of Information Technology (DoIT) to update systems to accept two separate tax rates for the same tax year. In addition, instructions and new forms with separate tax rates for the same year would need to be created to reflect the reduction in the BET rates for calendar year filers and fiscal year filers. The Department is unable to estimate the exact fiscal impact at this time.
