Revision: Jan. 12, 2010, midnight
SB 389-FN-A – AS INTRODUCED
2010 SESSION
09/10
SENATE BILL 389-FN-A
AN ACT relative to the interest and dividends tax on certain distributions to investors in investment organizations.
SPONSORS: Sen. Houde, Dist 5; Sen. Janeway, Dist 7
This bill establishes that investors in investment organizations shall be taxed under the interest and dividends tax only on the portion of distributions received from the investment organization which are attributable to interest and dividends.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10-2757
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT relative to the interest and dividends tax on certain distributions to investors in investment organizations.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Interest and Dividends Tax; Definitions. Amend RSA 77:1-a by inserting after paragraph II the following new paragraph:
III. “Investment organization” means any organization, including a mutual fund, that limits its activities to investment activities involving some or all of the activities of acquiring, owning, holding, trading, managing, and disposing of equity or debt securities and activities incidental to or in support thereof.
2 New Section; Investors in Investment Organizations Taxable Only on Portion of Distributions Attributable to Interest and Dividends. Amend RSA 77 by inserting after section 4-f the following new section:
77:4-g Investors in Investment Organizations Taxable Only on Portion of Distributions Attributable to Interest and Dividends. Notwithstanding any other provision of RSA 77:4 to the contrary, an investor in an investment organization shall be taxable under this chapter only on the portion of distributions received from the investment organization that are attributable to interest and dividends of the investment organization, provided, however, that the portion of any such distribution attributable to interest from New Hampshire direct or municipal obligations and direct obligations of the United States government shall not be taxable under this chapter.
3 Effective Date. This act shall take effect July 1, 2010.
LBAO
10-2757
01/08/10
SB 389-FN-A - FISCAL NOTE
AN ACT relative to the interest and dividends tax on certain distributions to investors in investment organizations.
FISCAL IMPACT:
The Department of Revenue states this bill will decrease state general fund revenue by an indeterminable amount in FY 2011 and each fiscal year thereafter. This bill will have no fiscal impact on state, county and local expenditures or county and local revenue.
METHODOLOGY:
The Department of Revenue Administration states this bill exempts certain distributions from the interest and dividends tax. The Department does not have data to determine the decrease in state general fund revenue as a result of this bill. The Department states this bill could be administered with some additional cost, but those costs could be absorbed in the Department’s existing budget. The Department indicates the bill would require more effort in auditing and resolving compliance issues.