HB 619-FN-A – AS INTRODUCED
2007 SESSION
09/04
HOUSE BILL 619-FN-A
AN ACT establishing an additional exemption from the interest and dividends tax for individuals who are 70 years of age or older.
SPONSORS: Rep. Marshall Quandt, Rock 13; Rep. Matthew Quandt, Rock 13; Rep. Bettencourt, Rock 4; Rep. L. Ober, Hills 27; Rep. F. Sullivan, Hills 12; Sen. Clegg, Dist 14
This bill establishes an additional $1,400 exemption from the interest and dividends tax for individuals who are 70 years of age or older.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-0365
09/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT establishing an additional exemption from the interest and dividends tax for individuals who are 70 years of age or older.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Interest and Dividends Tax; Additional Exemption. Amend RSA 77:5 by inserting after paragraph IV the following new paragraph:
V. An additional $1,400 if either or both taxpayers are 70 years of age or older.
2 Effective Date. This act shall take effect July 1, 2007.
LBAO
07-0365 Revised 01/31/07
HB 619 FISCAL NOTE
AN ACT establishing an additional exemption from the interest and dividends tax for individuals who are 70 years of age or older.
FISCAL IMPACT:
The Department of Revenue Administrations has determined this bill may decrease general fund revenue by $1,443,000 in fiscal year 2008 and each year thereafter. There will be no fiscal impact on county and local revenues or state, county, and local expenditures.
METHODOLOGY:
The Department states this bill establishes an additional exemption of $1,400 from the interest and dividends tax for filers age 70 and older. The Department assumes this law would take effect July 1, 2007 and the costs of administering it could be absorbed within the existing budget. The Department calculated the estimated loss in revenue for FY 2008 based on tax year 2005 returns. In that year there were 17,103 returns that would have been eligible to take this exemption. An additional exemption of $1,400 per filer results in a tax savings of $70 for a single tax return or $140 for a joint tax return at the 5% tax rate. The loss in revenue is the lesser of the taxes on the exemption amount or actual taxes paid. The loss in revenue based on 2005 tax year data would be $1,443,000. The Department assumes this amount for FY 2008 and each year thereafter.