HB 457-FN-A – AS INTRODUCED
2009 SESSION
09/10
HOUSE BILL 457-FN-A
AN ACT increasing the standard exemption under the interest and dividends tax.
SPONSORS: Rep. Daniels, Hills 6; Sen. Roberge, Dist 9
This bill increases the standard exemption under the interest and dividends tax.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-0265
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT increasing the standard exemption under the interest and dividends tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Exemption Increased. Amend RSA 77:3, I to read as follows:
I. Taxable income is that income received from interest and dividends during the tax year prior to the assessment date by:
(a) Individuals who are inhabitants or residents of this state for any part of the taxable year whose gross interest and dividend income from all sources, including income from a qualified investment company pursuant to RSA 77:4, V, exceeds [$2,400] $3,600 during that taxable period.
(b) Partnerships, limited liability companies, associations, and trusts, the beneficial interest in which is not represented by transferable shares, whose gross interest and dividend income from all sources exceeds [$2,400] $3,600 during the taxable year, but not including a qualified investment company as defined in RSA 77-A:1, XXI, or a trust comprising a part of an employee benefit plan, as defined in the Employee Retirement Income Security Act of 1974, section 3.
(c) Fiduciaries deriving their appointment from a court of this state whose gross interest and dividend income from all sources exceeds [$2,400] $3,600 during the taxable year.
2 Interest and Dividends Tax; Exemption Increased. Amend RSA 77:5, I to read as follows:
I. Income of [$2,400] $3,600.
3 Returns and Declaration. Amend RSA 77:18, IV to read as follows:
IV. Notwithstanding the provisions of paragraphs I-III, the following individuals shall not be required to file a return and shall not be considered to have gross or net taxable income for the purposes of this chapter:
(a) Every individual whose total interest and dividend income is less than [$2,400] $3,600 for a taxable period.
(b) For joint filers whose total interest and dividend income is less than [$4,800] $7,200 for a taxable period.
4 Effective Date. This act shall take effect July 1, 2009.
LBAO
09-0265
12/22/08
HB 457-FN-A - FISCAL NOTE
AN ACT increasing the standard exemption under the interest and dividends tax.
FISCAL IMPACT:
The Department of Revenue Administration states this bill will decrease state general fund revenue by an indeterminable amount in FY 2009 and each year thereafter. There will be no fiscal impact on county and local revenue or state, county, and local expenditures.
METHODOLOGY:
The Department of Revenue Administration states this bill increases the standard exemption under the interest and dividends tax from $2,400 to $3,600. The Department reviewed 2006 tax year data and determined there were 59,960 returns filed with a tax amount paid. The Department recalculated a portion of the 2006 returns for filers who paid a tax, based on the increased exemption amount of $3,600, and determined that the additional $1,200 of exemption equates to $60 for single tax filers and $120 for joint tax filers. Utilizing this information the Department estimated that had the exemption been in place for the tax year 2006, the state general fund revenue would have decreased by $4,897,000. The Department projected this decrease in general fund revenue based on returns filed for tax year 2006 to FY 2010, and depending on the effective date of the bill stated that revenue may also decrease in FY 2009 from a reduction in estimated payments. The Department did not calculate the revenue decrease for FY 2011 through FY 2013.