HB 1499-FN-A – AS INTRODUCED
2008 SESSION
09/10
HOUSE BILL 1499-FN-A
AN ACT replacing the electricity consumption tax with an electricity generation tax.
SPONSORS: Rep. Mack, Hills 1; Rep. Hatch, Coos 3; Rep. Essex, Hills 1; Sen. Janeway, Dist 7
COMMITTEE: Science, Technology and Energy
This bill replaces the electricity consumption tax paid by consumers with an electricity generation tax paid by generation facilities.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
08-2134
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
AN ACT replacing the electricity consumption tax with an electricity generation tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter; Electricity Generation Tax. Amend RSA by inserting after chapter 83-F the following new chapter:
CHAPTER 83-G
ELECTRICITY GENERATION TAX
83-G:1 Definitions. In this chapter:
I. “Commissioner” means the commissioner of the department of revenue administration.
II. “Department” means the department of revenue administration.
III. “Taxable month” means a calendar month in which electricity is generated.
IV. “Taxpayer” means any person generating electricity in this state.
83-G:2 Imposition of Tax. Each taxpayer is liable for a tax of $.00028 per kilowatt hour of electricity generated within the state.
83-G:3 Collection of Tax. Every taxpayer shall collect and monthly remit the tax to the state as provided in RSA 83-E:4.
83-G:4 Tax Returns.
I. Except as provided in this section, on or before the fifteenth day of each second month following a taxable month, each taxpayer shall make a return to the department for the taxable month on a form prescribed by the department.
II. Any taxpayer who ceases to engage in generating electricity, and is thereby not responsible for filing returns under this chapter, shall file a final return with the department not more than one month after discontinuing such activity. This requirement shall apply notwithstanding any other provision of this chapter regarding the time within which to file a return.
III. If the commissioner finds that the information required for the making of an accurate return cannot reasonably be compiled by a taxpayer within one month and 15 days after the close of the taxable month for which a return is to be made, the commissioner may grant an extension of time for the filing of such return. Any such extension shall be granted for a period not to exceed 31 calendar days. The granting of such extension may be conditioned upon the payment by the taxpayer of an amount of money equal to the amount estimated by the commissioner to be due with the return when filed under extension. All such estimated payments shall be credited against the taxpayer’s liabilities under this chapter.
IV. The taxpayer shall pay to the department the amount of tax imposed by this chapter at the time it makes a return.
83-G:5 Instruments, Books, Records, Papers, and Other Documents.
I. Every taxpayer shall provide and keep the necessary instruments and records to show the amount expressed in kilowatt hours of electricity generated by such person.
II. Every taxpayer required to file or actually filing under this chapter shall keep books, records, papers, and other documents which are adequate to reflect the information required by this chapter to be reported to the department by the filing of timely returns with the department.
III. All instruments, books, records, and other papers and documents required to be kept by this chapter shall, at all times during business hours of the day, be subject to inspection by the department.
83-G:6 Additional Returns. When the commissioner has reason to believe that a taxpayer has failed to file a return or to include any part of the total kilowatt hours electricity generated in a filed return, the commissioner may require the taxpayer to file a return or a supplementary return showing such additional information as the commissioner prescribes. Upon the receipt of the supplementary return, or if none is received within the time set by the commissioner, the commissioner may find and assess the amount due upon the information that is available. The making of such additional return does not relieve the taxpayer of any penalty for failure to make a correct original return, or relieve such person from liability for interest imposed under RSA 21-J:28 or for any other additional charges imposed by the commissioner. This section shall not be construed to modify or extend the statute of limitations provided in RSA 21-J:29.
83-G:7 Administration; Rulemaking.
I. The commissioner shall collect the taxes imposed under this chapter, interest on tax, additions to tax and penalties imposed, and pay over to the state treasurer the amount of funds collected under this chapter.
II. The commissioner shall adopt rules, under RSA 541-A, relative to:
(a) The form of the return and the data which it must contain for the correct computation of the number of kilowatt hours of electricity generated in this state and the tax assessed.
(b) The administration of the electricity generation tax.
(c) The recovery of any tax, interest on tax, additions to tax, or penalties imposed by RSA 83-G or RSA 21-J.
83-G:8 Tax Sales. The provisions of RSA 80:26 apply to the sale of land for the payment of taxes due under this chapter, and the state treasurer is authorized to purchase the land for the state. If the state purchases the land, the state treasurer shall certify the purchase to the governor, and the governor shall draw a warrant for the purchase price out of any money in the treasury not otherwise appropriated.
83-G:9 Severability. If any provision of this chapter or the application thereof to any person or circumstance is held to be invalid, the invalidity shall not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.
2 Reference Change. Amend RSA 21-J:31 to read as follows:
21-J:31 Penalty for Failure to File. Any taxpayer who fails to file a return when due, unless an extension has been granted by the department, shall pay a penalty equal to 5 percent of the amount of the tax due or $10, whichever is greater, for each month or part of a month during which the return remains unfiled. The total amount of any penalty shall not, however, exceed 25 percent of the amount of the tax due or $50, whichever is greater. This penalty shall not be applied in any case in which a return is filed within the extended filing period as provided in RSA 77:18-b, RSA 77-A:9, RSA 77-E:8, RSA 83-C:6, RSA [83-E:5] 83-G:4, RSA 84-A:7, or RSA 84-C:7, or the failure to file was due to reasonable cause and not willful neglect of the taxpayer. The amount of the penalty is determined by applying the percentages specified to the net amount of any tax due after crediting any timely payments made through estimating or other means.
3 Reference Change. Amend RSA 21:33-a, I to read as follows:
I. If there is a substantial understatement of tax imposed under RSA 77, RSA 77-A, RSA 77-E, RSA 78-A, RSA 78-C, RSA 82-A or RSA 83-C, or RSA [83-E] 83-G, for any taxable period, there shall be added to the tax an amount equal to 25 percent of the amount of any underpayment attributable to such understatement.
4 Repeal. RSA 83-E, relative to electricity consumption tax, is repealed.
5 Effective Date. This act shall take effect January 1, 2009.
LBAO
08-2134
11/29/07
HB 1499-FN-A - FISCAL NOTE
AN ACT replacing the electricity consumption tax with an electricity generation tax.
FISCAL IMPACT:
The Department of Revenue Administration has determined this bill will increase state general fund unrestricted revenue by $297,000 in FY 2009 and $594,000 in FY 2010 and each fiscal year thereafter. There will be no fiscal impact on county and local revenues or state, county, and local expenditures
METHODOLOGY:
The Department of Revenue Administration (DRA) states this bill replaces the $.00055 per kilowatt hour electricity consumption tax paid by consumers with a $.00028 per kilowatt hour electricity generation tax paid by generation facilities. The Department estimated the net New Hampshire kilowatt hour electricity generation by generation facilities at 24,470,014,000 kilowatt hours using Department of Energy data for 2005. Using this kilowatt hour base, the revenue from this tax at $.00028 per kilowatt would be $6,851,604. Repealing the $.00055 consumption tax would reduce revenue by approximately $6,258,150 resulting in a revenue increase of $594,000 (rounded). With the effective date of January 1, 2009, the Department indicates that half of the revenue increase would be collected in FY 2009, and the entire amount collected beginning in FY 2010. The Department further states that the costs of administering this tax change could be absorbed within the Department’s existing budget.