HB 784-FN-A – AS INTRODUCED
2007 SESSION
09/10
HOUSE BILL 784-FN-A
AN ACT requiring excess revenue stabilization reserve account funds to be used for a credit against business enterprise and business profits taxes.
SPONSORS: Rep. Lund, Rock 5; Rep. Hopfgarten, Rock 5
This bill requires excess revenue stabilization reserve account funds to be used for a credit against business enterprise and business profits taxes.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-0659
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT requiring excess revenue stabilization reserve account funds to be used for a credit against business enterprise and business profits taxes.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Excess Revenue Stabilization Reserve Account Funds; Business Taxes Credit. Amend RSA 9:13-e, V to read as follows:
V.(a) If, after the requirements of paragraphs II-IV have been met and the balance remaining in the revenue stabilization reserve account is in excess of an amount equal to 10 percent of the actual general fund unrestricted revenues for the most recently completed fiscal year, then such excess shall be transferred, without further action, to the [general fund surplus] business tax credits account established in subparagraph (b).
(b) There is established in the office of the state treasurer a business tax credits account, which shall be continually appropriated to the department of revenue administration. Any moneys transferred to this account at the end of each fiscal biennium shall be used by the department as a credit against either the business profits tax or the business enterprise tax for each business profits taxpayer and business enterprise taxpayer. The credit shall be calculated by prorating the taxpayer’s current year’s tax liability.
2 New Paragraph; Business Profits Tax Credit. Amend RSA 77-A:5 by inserting after paragraph XII the following new paragraph:
XIII. The credit for excess revenue stabilization account funds, as computed in RSA 9:13-e, V.
3 New Section; Business Enterprise Tax Credit. Amend RSA 77-E by inserting after section 3-a the following new section:
77-E:3-b Credit. The credit for excess revenue stabilization account funds, as computed pursuant to RSA 9:13-e, V, shall be allowed against the tax due under this chapter.
4 Special Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (252) the following new subparagraph:
(253) Moneys transferred to the business tax credits account, established in RSA 9:13-e, V(b).
5 Effective Date. This act shall take effect July 1, 2007.
LBAO
07-0659
Revised 02/12/07
HB 784 FISCAL NOTE
AN ACT requiring excess revenue stabilization reserve account funds to be used for a credit against business enterprise and business profits taxes.
FISCAL IMPACT:
The Department of Revenue Administration states this bill may increase state restricted revenue and expenditures by an indeterminable amount in FY 2009 and each year thereafter. There will be no fiscal impact on local and county revenue or expenditures.
METHODOLOGY:
The Department of Revenue Administration (DRA) states this bill requires excess revenue stabilization reserve account funds to be used for a credit against business enterprise and business profits taxes. The excess revenue stabilization reserve occurs at the end of each biennium when the revenue stabilization reserve account is in excess of an amount equal to 10% of the actual general fund unrestricted revenue for the most recently completed fiscal year. This bill requires that this excess is then transferred to the business tax credits account established in the bill. The DRA states the increase in restricted revenue is indeterminable because the Department cannot determine when or how much excess revenue will exist to transfer into the business tax credits account. DRA further states that the increase in state restricted expenditures is also indeterminable since the amount to distribute is unknown. DRA also indicates the “prorating the taxpayer’s current year’s tax liability” method must be clarified to allow the Department to administer the program. DRA states additional indeterminable administrative expenses will be required to verify and process the tax credits identified in the bill.