SB210 (2005) Detail

(New Title) relative to a declaratory judgment to adjudicate constitutional nexus.


SB 210-FN – AS AMENDED BY THE SENATE

03/10/05 0453s

2005 SESSION

05-0967

05/10

SENATE BILL 210-FN

AN ACT relative to a declaratory judgment to adjudicate constitutional nexus.

SPONSORS: Sen. Boyce, Dist 4; Sen. Letourneau, Dist 19; Sen. Odell, Dist 8; Rep. Major, Rock 8; Rep. Hunt, Ches 7; Rep. Mirski, Graf 10; Rep. Giuda, Graf 5

COMMITTEE: Ways and Means

AMENDED ANALYSIS

The bill declares that the state superior court has the authority to determine whether requiring a New Hampshire business to pay taxes in another state is an undue burden on interstate commerce in violation of the United States Constitution.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/10/05 0453s

05-0967

05/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT relative to a declaratory judgment to adjudicate constitutional nexus.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Chapter; Declaratory Judgment to Adjudicate Constitutional Nexus. Amend RSA by inserting after chapter 546-B the following new chapter:

CHAPTER 546-C

DECLARATORY JUDGMENT TO ADJUDICATE CONSTITUTIONAL NEXUS

546-C:1 Declaratory Judgment to Adjudicate Constitutional Nexus.

I. The superior courts shall have original jurisdiction over civil actions seeking declaratory judgment where:

(a) The party seeking declaratory relief is a business that:

(1) Is organized under the laws of this state or sole proprietorship owned by a New Hampshire domiciliary; or

(2) Has qualified to do business in this state; and

(b) The responding party is a government official of another state, or political subdivision of another state, who asserts that the business in question is obliged to collect sales or use taxes for such state or political subdivision based upon conduct of the business that occurs wholly or partially within New Hampshire.

II. Any business meeting the requirements and facing the circumstances described in paragraph I shall be entitled to declaratory relief on the issue of whether the requirement of another state, or political subdivision of another state, that the business collect and remit sales or use taxes to that state, or political subdivision, in the factual circumstances of the business’ operations giving rise to the demand, constitutes an undue burden on interstate commerce within the meaning of Article 1, Section 8, Clause 3 of the United States Constitution.

2 Effective Date. This act shall take effect July 1, 2005.

LBAO

05-0967

Amended 4/8/05

SB 210 FISCAL NOTE

AN ACT relative to a declaratory judgment to adjudicate constitutional nexus.

FISCAL IMPACT:

The Judicial Branch states this bill, as amended by the Senate (Senate Amendment #2005-0453s), will increase state general fund expenditures by an indeterminable amount in FY 2006 and each year after. There will be no fiscal impact on state, county, and local revenue or county and local expenditures.

METHODOLOGY:

The Judicial Branch states this bill will give the Superior Court jurisdiction to issue declaratory judgments, upon petition of a business organized in New Hampshire or authorized to do business in New Hampshire, against a tax official of another state on the question of whether the collection by the other state of sales or use taxes is a burden on interstate commerce. The Judicial Branch further states this new function would have a significant fiscal impact on the Branch because proceedings on taxation and burden on interstate commerce are highly factual and require considerable court time. Also, many businesses could seek declaratory judgments of this nature, and appeals would be common because of the large amount of money at stake. The Judicial Branch indicates it cannot estimate how many Superior Court trial days this bill will require, however, trials in the Superior Court cost $1,200 per day in personnel-related expenses.

Links

SB210 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

SB210 Revision: 9261 Date: Jan. 21, 2010, midnight

Docket