HB116 (2008) Detail

Limiting access to certain business records.


HB 116 – AS INTRODUCED

2007 SESSION

07-0157

05/04

HOUSE BILL 116

AN ACT limiting access to certain business records.

SPONSORS: Rep. Stepanek, Hills 6; Rep. Merrow, Carr 3; Rep. Carolyn Brown, Carr 1; Rep. Charles Clark, Belk 5; Sen. Gallus, Dist 1; Sen. Kenney, Dist 3

COMMITTEE: Commerce

ANALYSIS

This bill restricts the access of out-of-state government tax collection agencies to New Hampshire business records. Out-of-state agencies seeking such access are required to demonstrate a substantial nexus between the taxing state and the New Hampshire business.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07-0157

05/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT limiting access to certain business records.

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

1 Purpose. Since one of our neighboring states has amended its revenue laws to allow the maximum collection of sales taxes under the Interstate Commerce Clause of the United States Constitution, New Hampshire businesses have come under increasing pressure to collect sales taxes for out-of-state revenue agencies. It is the intent of the general court to provide a means for New Hampshire businesses to protect themselves against the unrestricted and aggressive collection efforts being made by these revenue agents.

2 New Chapter; Access to Business Records. Amend RSA by inserting after chapter 337-A the following new chapter:

CHAPTER 337-B

ACCESS TO BUSINESS RECORDS

337-B:1 Definitions. In this chapter:

I. “Business” means any corporation, partnership, limited liability company, limited liability partnership, sole proprietorship, association, or trust organized under the laws of this state.

II. “Records” or “business records” include books of account, vouchers, documents, canceled checks, payments, correspondence, records of sales, personnel, equipment, and production, reports relating to any or all such records, and other business papers.

337-B:2 Access to Business Records Limited. No New Hampshire business shall be required to open its records to any employee or agent of any agency of another state that is responsible for the collection or regulation of sales taxes in such state unless a request for such disclosure is made in writing by certified mail. The business shall have 30 days to respond to such request by certified mail. If a business objects to the written request for disclosure of records, the business shall not be required to open its books without a court order from the superior court in the county in which the business is located. The superior court shall not issue such an order unless the requesting party demonstrates clear and convincing evidence of a substantial nexus between the taxing state and the New Hampshire business. The requesting party shall be responsible for all legal and accounting costs incurred by the business if the court order is denied. If the business does not respond to the initial request to disclose records within 30 days, the business shall not have the protection of the court order described in this section.

3 Effective Date. This act shall take effect January 1, 2008.

Links

HB116 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB116 Revision: 11364 Date: Jan. 1, 2008, midnight

Docket