SB94 (2005) Detail

Prohibiting the taxation of internet access and internet activities under the communications services tax and repealing the local property tax exemption for wooden poles and conduits.


SB 94-FN-A-LOCAL – AS INTRODUCED

2005 SESSION

05-0578

09/01

SENATE BILL 94-FN-A-LOCAL

AN ACT prohibiting the taxation of internet access and internet activities under the communications services tax and repealing the local property tax exemption for wooden poles and conduits.

SPONSORS: Sen. Green, Dist 6

COMMITTEE: Energy and Economic Development

ANALYSIS

This bill prohibits the taxation of internet access and internet activities under the communications services tax and repeals the local property tax exemption for wooden poles and conduits on July 1, 2005.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05-0578

09/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT prohibiting the taxation of internet access and internet activities under the communications services tax and repealing the local property tax exemption for wooden poles and conduits.

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

1 New Section; Communications Services Tax; Prohibition on Taxing Internet Access and Internet Activities. Amend RSA 82-A by inserting after section 5 the following new section:

82-A:5-a Prohibition on Taxation of Internet Access and Internet Activities. This tax shall not be imposed on internet access and internet activities.

2 Prospective Repeal Date for Exemption of Wooden Poles and Conduits Under RSA 72:8-b. Amend 1998, 304:6, I as amended by 1999, 163:7, 2001, 158:2, 2003, 270:8, and 2004, 35:1 to read as follows:

I. Section 5 of this act shall take effect July 1, [2006] 2005.

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

LBAO

05-0578

Revised 2/9/05

SB 94 FISCAL NOTE

AN ACT prohibiting the taxation of internet access and internet activities under the communications services tax and repealing the local property tax exemption for wooden poles and conduits.

FISCAL IMPACT:

The Department of Revenue Administration and New Hampshire Municipal Association state this bill will increase state education trust fund revenue, decrease state unrestricted general fund revenue and increase local revenue by an indeterminable amount in FY 2006 and each year thereafter. There will be no fiscal impact on state, county, and local expenditures or county revenue.

METHODOLOGY:

The Department of Revenue Administration states this bill will prohibit the taxation of internet access and internet activities under the communications services tax, and changes the repeal of the local property tax exemption for wooden poles and conduits from an effective date of July 1, 2006 to July 1, 2005. The Department states that based on previous studies, state general unrestricted revenue from the communications services tax would decrease by between $4 and $15 million if internet access and activities are no longer taxed. The Department further states that depending on how broadly “internet access and internet activities” is interpreted, the entire communications services tax may be at risk. The tax collections from the communications services tax totaled $65.60 million in FY 2004. The Department states that the early repeal of the wooden pole and conduits portion of this bill will result in an indeterminable increase to both the state and local municipalities beginning in FY 2006.

The New Hampshire Municipal Association states this bill changes the repeal of the local property tax exemption for wooden poles and conduits from an effective date of July 1, 2006 to July 1, 2005. This change will permit cities and towns to levy a property tax on wooden poles and conduits owned by telephone companies beginning July 1, 2005. The Association further states that although there have been several study committees reviewing this issue; it has never been determined what amount of revenue would be generated when this exemption is repealed. The Association believes that the additional revenue to the state and cities and towns is indeterminable, but has the potential to be a significant amount.

Links

SB94 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

SB94 Revision: 9346 Date: Jan. 21, 2010, midnight

Docket