HB 1464-FN-A – AS INTRODUCED
2010 SESSION
09/01
HOUSE BILL 1464-FN-A
AN ACT increasing the threshold amounts for taxation under the business enterprise tax.
SPONSORS: Rep. Hinkle, Hills 19; Rep. Seidel, Hills 20; Rep. Sapareto, Rock 5; Sen. Bragdon, Dist 11
This bill increases the threshold amounts for taxation under the business enterprise tax.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10-2171
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT increasing the threshold amounts for taxation under the business enterprise tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Business Enterprise Tax; Returns. Amend RSA 77-E:5 to read as follows:
77-E:5 Returns.
I. Every business enterprise having gross business receipts in excess of [$150,000] $200,000 as defined by RSA 77-E:1, X, during the taxable period or the enterprise value tax base of which is greater than [$75,000] $100,000, shall, on or before the fifteenth day of the third month in the case of enterprises required to file a United States corporation tax return, and the fifteenth day of the fourth month in the case of all other business enterprises, following expiration of its taxable period, make a return to the commissioner. All returns shall be signed by the business enterprise or by its authorized representative, subject to the pains and penalties of perjury and the penalties provided in RSA 21-J:39.
II. Every business enterprise shall in addition file a declaration of its estimated business enterprise tax for its subsequent taxable period; provided, however, if the estimated tax is less than [$200] $260, a declaration need not be filed; and provided further that a declaration shall be filed at the end of any quarter thereafter in which estimated tax exceeds [$200] $260. The declaration shall be filed when payments are due under RSA 77-E:6.
2 Effective Date. This act shall take effect July 1, 2010.
LBAO
10-2171
11/23/09
HB 1464-FN-A - FISCAL NOTE
AN ACT increasing the threshold amounts for taxation under the business enterprise tax.
FISCAL IMPACT:
The Department of Revenue Administration states this bill will decrease state general fund revenue and education trust fund revenue by an indeterminable amount in FY 2011 and each fiscal 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 business enterprise tax (BET) filing thresholds to $200,000 of gross business receipts or a business enterprise tax value base (BETVB) of $100,000. The Department states it analyzed FY 2009 data of the 43,753 returns filed by entities that paid any BET on returns filed during that period. The Department is not able to analyze the impact of the $200,000 gross business receipt threshold because its tax forms and computer systems do not capture the gross business receipts from a business. The Department estimates the maximum decrease in state revenue from the 19,100 entities that had a BETVB of less than $100,000 would be $6,777,000 in FY 2011. BET revenue is shared by the education trust fund (2/3) and the general fund (1/3); therefore, the estimated annual decrease in education trust fund revenue is $4,518,000 and the estimated annual decrease in general fund revenue is $2,259,000. Since the Department is cannot estimate the impact of the proposed $200,000 gross business receipts threshold, the total decrease in revenue to the education trust fund and general fund is indeterminable.