HB 1638-FN-A – AS INTRODUCED
2006 SESSION
09/10
HOUSE BILL 1638-FN-A
AN ACT reducing the rate of the communications services tax.
SPONSORS: Rep. Hagan, Hills 17; Rep. Newton, Straf 1; Rep. Marshall Quandt, Rock 13; Rep. Souza, Hills 11; Rep. Mirski, Graf 10; Sen. Martel, Dist 18
This bill reduces the rate of the communications services tax.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
06-2830
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT reducing the rate of the communications services tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Imposition of Tax; Intrastate Communications Services; Rate Reduced. Amend RSA 82-A:3 to read as follows:
82-A:3 Imposition of Tax; Intrastate Communications Services. A tax is imposed upon intrastate communications services furnished to a person in this state and purchased at retail from a retailer by such person, at the rate of [7] 5.5 percent of the gross charge therefor. However, such tax is not imposed on any communications services to the extent a tax on such services may not, under the Constitution and statutes of the United States, be made the subject of taxation by the state.
2 Imposition of Tax; Interstate Communications Services; Rate Reduced. Amend RSA 82-A:4 to read as follows:
82-A:4 Imposition of Tax; Interstate Communications Services. Except as provided in RSA 82-A:4-b, a tax is imposed upon interstate communications services and private communications services furnished to a person in this state and purchased at retail from a retailer by such person, at the rate of [7] 5.5 percent of the gross charge when such service purchased on a call-by call basis originates in this state and terminates outside this state or originates outside this state and terminates in this state and the service address is in this state, or when such service purchased on a basis other than a call-by-call basis is provided to a person with a place of primary use in this state or when such private communications services are apportioned to this state in accordance with RSA 82-A:4-c. Provided however, a tax is imposed upon interstate paid calling service furnished to a person in this state and purchased at retail from a retailer by such person, at the rate of [7] 5.5 percent of the gross charge when the origination point of the communications signal (as first identified by either (a) the seller’s telecommunications system, or (b) information received by the seller from its service provider, where the system used to transport such signals is not that of the seller) is in this state. To prevent actual multi-state taxation of communications services that are subject to taxation under this section, any taxpayer, upon proof that that taxpayer has paid a tax in another state on such services, shall be allowed a credit against the tax imposed in this section to the extent of the amount of such tax properly due and paid in such other state. However, such tax is not imposed on communications services to the extent such services may not, under the Constitution and statutes of the United States, be made the subject of taxation by the state.
3 Applicability. Sections 1 and 2 of this act shall apply for each tax period beginning on or after July 1, 2006.
4 Effective Date. This act shall take effect July 1, 2006.
LBAO
06-2830
10/24/05
HB 1638-FN-A - FISCAL NOTE
AN ACT reducing the rate of the communications services tax.
FISCAL IMPACT:
The Department of Revenue Administration has determined this bill will decrease state general fund revenue by $15 million in FY 2007 and each year thereafter. There will be no fiscal impact on state, county and local expenditures or county and local revenue.
METHODOLOGY:
The Department determined the $15 million communications services tax decrease using FY 2005 tax data at the current 7% tax rate and applied the 5.5% tax rate stated in this bill to the tax base. The Department believes the tax base may change and therefore, did not estimate the tax increase beyond FY 2007. The Department can administer this tax change within their existing budget.