Bill Text - HB478 (2007)

Decreasing the rate of the business profits tax.


Revision: Jan. 11, 2010, midnight

HB 478-FN-A – AS INTRODUCED

2007 SESSION

07-0972

09/04

HOUSE BILL 478-FN-A

AN ACT decreasing the rate of the business profits tax.

SPONSORS: Rep. Renzullo, Hills 27; Rep. Ulery, Hills 27; Rep. Hopfgarten, Rock 5; Rep. Itse, Rock 9

COMMITTEE: Ways and Means

ANALYSIS

This bill decreases the rate of the business profits tax.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07-0972

09/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT decreasing the rate of the business profits tax.

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

1 Purpose. The legislature finds that it is an established rule of economics that decreasing the rate of a state business tax has a growth stimulus effect on the state’s economy, which results in an increase in overall revenue generated by the tax. The purposes of this act are to stimulate business and job growth in New Hampshire and to increase state revenues, by decreasing the rate of the business profits tax from 8.5 percent to 8 percent.

2 Business Profits Tax; Rate Decreased. Amend RSA 77-A:2 to read as follows:

77-A:2 Imposition of Tax. A tax is imposed at the rate of [8.5] 8 percent upon the taxable business profits of every business organization.

3 Effective Date. This act shall take effect July 1, 2007.

LBAO

07-0972

1/9/07

HB 478-FN-A - FISCAL NOTE

AN ACT decreasing the rate of the business profits tax.

FISCAL IMPACT:

The Department of Revenue Administration states this bill will decrease state general fund revenue by $15,569,465 and state education trust fund revenue by $3,336,314 in FY 2008 and each fiscal year thereafter. There will be no fiscal impact on county and local revenue or state, county, and local expenditures.

METHODOLOGY:

The Department of Revenue Administration states this bill reduces the rate of the business profits tax (BPT) from 8.5% to 8% beginning in FY 2008. The Department states total estimated state revenue from the BPT in FY 2007 is $321,398,244, indicating a tax base of $3,781,155,812. Assuming the BPT tax base remains constant in FY 2008 and each year thereafter, total state revenue will decrease by $18,905,779 ($15,569,465 general fund and $3,336,314 education trust fund pursuant to RSA 77-A:20-a).

The Department states this tax change can be implemented within its existing budget.

None