HB 221-FN-A – AS INTRODUCED
2009 SESSION
09/10
HOUSE BILL 221-FN-A
AN ACT requiring a discount to wholesalers on cash purchases of tobacco tax stamps.
This bill requires the commissioner of revenue administration to provide a discount to wholesale tobacco distributors who purchase tobacco tax stamps on a cash basis.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-0805
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT requiring a discount to wholesalers on cash purchases of tobacco tax stamps.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Tobacco Tax Stamps; Discount for Wholesalers on Cash Purchases. Amend RSA 78:9, I to read as follows:
I. The commissioner shall adopt rules pursuant to RSA 541-A relative to the design and denomination of stamps to be secured by the commissioner for affixing to packages of tobacco products as evidence of the payment of the tax imposed by this chapter. The commissioner shall sell such stamps on a cash basis to each licensed wholesaler at a discount of one cent below the amount of the tax established by RSA 78:7 to encourage each wholesaler to affix such stamps and compensate wholesalers for affixing such stamps. The annual discount allowed under this section shall not exceed $200,000 for each licensed wholesaler in each fiscal year. The commissioner shall sell such stamps to each licensed wholesaler. The commissioner may permit a licensed wholesaler to pay for such stamps within 30 days after the date of purchase, provided a bond satisfactory to the commissioner in an amount not less than the sale price of such stamps shall have been filed with the commissioner, conditioned upon the payment of such stamps. The commissioner shall keep accurate records of all stamps sold to each wholesaler and shall pay over all receipts from the sale of such stamps to the state treasurer daily.
2 Effective Date. This act shall take effect July 1, 2009.
LBAO
09-0805
12/22/08
HB 221-FN-A - FISCAL NOTE
AN ACT requiring a discount to wholesalers on cash purchases of tobacco tax stamps.
FISCAL IMPACT:
The Department of Revenue Administration estimates this bill will decrease state revenues by $1,628,704 in FY 2010 and each year thereafter and increase state expenditures by an indeterminable amount in FY 2010 and each year thereafter. This bill will have no fiscal impact on county or local expenditures or revenues.
METHODOLOGY:
The Department of Revenue Administration states this bill will provide a discount to wholesale tobacco distributors who purchase tobacco tax stamps on a cash basis. The Department estimates this bill will decrease state revenues by maximum of $1,628,704 and increase state expenditures by an indeterminable amount in FY 2010 and for the years thereafter. The estimate is based on a straight line calculation for one cent of tobacco tax; the budgeted tobacco tax revenue of $175,900,000 in FY 2009 divided by a tax rate of $1.08 (the rate prior to the $0.25 tax increase that went into effect in October 2008). Since the bill also contains provisions for the maximum discount of $200,000 per licensed wholesaler, the Department notes that the entire estimated $1,628,704 decrease may not be realized.
The Department states that due to the additional cost incurred by the Department to administer the law and enforce the limitation of the discount per wholesaler, state expenditures will increase by an indeterminable amount in FY 2010 and each year thereafter.