HB 1622-FN-A-LOCAL – AS INTRODUCED
2010 SESSION
06/09
HOUSE BILL 1622-FN-A-LOCAL
AN ACT repealing certain tax and fee increases in the 2010-2011 budget on July 1, 2010.
SPONSORS: Rep. Pepino, Hills 11; Rep. Mead, Hills 4; Sen. Carson, Dist 14
This bill repeals certain tax and fee increases in the 2010-2011 budget on July 1, 2010.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10-2071
06/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT repealing certain tax and fee increases in the 2010-2011 budget on July 1, 2010.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Tax Imposed. Amend RSA 78:7 to read as follows:
78:7 Tax Imposed. A tax upon the retail consumer is hereby imposed at the rate of [$1.78] $1.33 for each package containing 20 cigarettes or at a rate proportional to such rate for packages containing more or less than 20 cigarettes, on all cigarettes sold at retail in this state. The payment of the tax shall be evidenced by affixing stamps to the smallest packages containing the cigarettes in which such products usually are sold at retail. The word “package” as used in this section shall not include individual cigarettes. No tax is imposed on any transactions, the taxation of which by this state is prohibited by the Constitution of the United States.
2 Tobacco Tax Imposed on Tobacco Products Other Than Cigarettes. Amend RSA 78:7-c to read as follows:
78:7-c Tax Imposed on Tobacco Products Other Than Cigarettes. A tax upon the retail consumer is hereby imposed on tobacco products other than cigarettes at a rate of [48.59] 19 percent of the wholesale sales price. The tax under this section may be rounded to the nearest cent if the commissioner determines that the amount of tax would not thereby be made materially disproportionate. No such tax is imposed on any transactions, the taxation of which by this state is prohibited by the Constitution of the United States. No such tax shall be imposed on premium cigars.
3 Tobacco Tax; Applicability. Sections 1 and 2 of this act shall apply to all persons licensed under RSA 78:2. Such persons shall inventory all taxable tobacco products in their possession and file a report of such inventory with the department of revenue administration on a form prescribed by the commissioner within 20 days after the effective date of this act. The tax rate effective July 1, 2010 shall apply to such inventory. The inventory form shall be treated as a tax return for the purpose of computing penalties under RSA 21-J.
4 Imposition of Tax. Amend RSA 78-A:6, I through II-a to read as follows:
78-A:6 Imposition of Tax.
I. A tax of [9] 8 percent of the rent is imposed upon each occupancy.
II. A tax is imposed on taxable meals based upon the charge therefor as follows:
(a) [Four] Three cents for a charge between $.36 and $.37 inclusive;
(b) [Five] Four cents for a charge between $.38 and $.50 inclusive;
(c) [Six] Five cents for a charge between $.51 and $.62 inclusive;
(d) [Seven] Six cents for a charge between $.63 and $.75 inclusive;
(e) [Eight] Seven cents for a charge between $.76 and $.87 inclusive;
(f) [Nine] Eight cents for a charge between $.88 and $1.00 inclusive;
(g) [Nine] Eight percent of the charge for taxable meals over $1.00, provided that fractions of cents shall be rounded up to the next whole cent.
II-a. A tax of [9] 8 percent is imposed upon the gross rental receipts of each rental.
5 Meals and Rooms Tax; Definition of Hotel; Campsites. Amend the introductory paragraph of RSA 78-A:3, III to read as follows:
III. “Hotel” means an establishment which holds itself out to the public by offering sleeping accommodations for rent, whether or not the major portion of its operating receipts is derived from sleeping accommodations. The term includes, but is not limited to, inns, motels, tourist homes and cabins, ski dormitories, ski lodges, lodging homes, rooming houses, furnished room houses, boarding houses, private clubs, hostels, cottages, camps, [campsites,] chalets, barracks, dormitories, and apartments. The term does not include the following:
6 Repeal. The following are repealed:
I. RSA 339-F:6, V and VI, relative to certification of reduced ignition propensity cigarettes.
II. RSA 78-A:8-b, I-a, relative to the requirement for a surety bond for meals and rentals operators.
III. 2009, 144:254, relative to eligibility for certain wine discounts.
7 Effective Date. This act shall take effect July 1, 2010.
LBAO
10-2071
12/14/09
HB 1622-FN-A-LOCAL - FISCAL NOTE
AN ACT repealing certain tax and fee increases in the 2010-2011 budget on July 1, 2010.
FISCAL IMPACT:
The Department of Revenue Administration, Liquor Commission and Office of Legislative Budget Assistant state this bill will decrease state general fund revenue and increase state expenditures by an indeterminable amount in FY 2011 and each fiscal year thereafter. There is no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department of Revenue Administration states:
• Sections 1-3 reduces the tobacco tax by $.45 per pack to $1.33, reduces the tax imposed on smokeless tobacco products, and sets the inventory floor tax date at July 1, 2010. The Department estimates this will result in the following decreases to state general fund revenue; $23.8 million tobacco tax revenue per year, $3.1 million smokeless products per year, and a one time $4.5 floor tax refund.
• Section 4 reduces the meals and rooms tax rate from 9% to 8%, which the Department states will reduce state general fund revenue by $19.5 million per year.
• Section 5 eliminates campsites from meals and rooms taxation, which the Department states will reduce state general fund revenue by $4.1 million per year.
• Section 6, II. repeals the surety requirement for meals and rental operators and will reduce state general fund revenue by $3.0 million per year.
The Department further indicates state expenditures will increase by an indeterminable amount as a result of the changes in the bill.
The Liquor Commission states one section of this bill impacts the Commission. Section 6, III. eliminates a reduction in the discount extended to off-premise licensees (total of 13) from 20% to 15% after a licensee has purchased $350,000 worth of product starting July 1 of each fiscal year. The Commission estimates the decrease in revenue that will result in a reduced revenue transfer to the general fund of $3.85 million in FY 2011, $4.04 million in FY 2012, $4.24 million in FY 2013, and $4.45 million in FY 2014. The Commission assumed a 3% growth in revenue for FY 2011 and 5% after FY 2011.
LBAO
10-2071
12/14/09
Page 2
The Office of the Legislative Budget Assistant states Section 6, I. repeals the certification of reduced ignition propensity cigarettes which during budget deliberations was estimated to reduce state fire standards and training revenue by approximately $275,000 per year.