Revision: May 6, 2010, midnight
SB 511-FN-A – VERSION ADOPTED BY BOTH BODIES
03/24/10 1127s
2010 SESSION
09/10
SENATE BILL 511-FN-A
AN ACT relative to an exemption from the tax on gambling winnings.
SPONSORS: Sen. Barnes, Jr., Dist 17; Sen. Odell, Dist 8; Sen. D'Allesandro, Dist 20; Sen. Bradley, Dist 3
This bill establishes an exemption from the tax on gambling winnings for gambling winnings won prior to January 1, 1999 and distributed in annuity payments.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/24/10 1127s
10-2944
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT relative to an exemption from the tax on gambling winnings.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Gambling Winnings; Non-Taxable Income. Amend RSA 77:41 to read as follows:
77:41 Non-Taxable Income.
I. No tax shall be levied directly or indirectly under this subdivision upon any income otherwise taxable hereunder, which is received and used by any educational, religious, charitable, or temperance organization incorporated or organized in this state, for the purposes for which it is established.
II. No tax shall be levied directly or indirectly under this subdivision upon gambling winnings otherwise taxable hereunder, won prior to January 1, 1999 and distributed in annuity payments.
2 Effective Date. This act shall take effect upon its passage.
LBAO
10-2944
Amended 04/03/10
SB 511 FISCAL NOTE
AN ACT relative to an exemption from the tax on gambling winnings.
FISCAL IMPACT:
The Lottery Commission states this bill, as amended by the Senate (Amendment #2010-1127s), will decrease state general fund revenue by $1,170,000 in FY 2010, $1,041,250 in FY 2011, $981,067 in FY 2012, $869,267 in FY 2013 and $837,667 in FY 2014. This bill will have no fiscal impact on state, county and local expenditures or county and local revenue.
METHODOLOGY:
The Lottery Commission states this bill establishes an exemption from the tax on gambling winnings for gambling winnings won prior to January 1, 1999 and distributed in annuity payments. The Commission assumed an effective date in FY 2010, and assumed any revenue collected to date in FY 2010 would be refunded by the agency collecting the tax, the Department of Revenue Administration (DRA). The table below shows DRA’s estimate of the gambling winnings tax revenue reduction as a result of this bill.
FY 2010 |
FY 2011 |
FY 2012 |
FY 2013 |
FY 2014 | |
Non-taxable annuities won prior to 1/1/99: |
$11,700,000 |
$11,700,000 |
$11,700,000 |
$11,700,000 |
$11,700,000 |
Winners last annuity payment |
|||||
2010 |
($1,287,500) |
($1,287,500) |
($1,287,500) |
($1,287,500) | |
2011 |
($601,832) |
($601,832) |
($601,832) | ||
2012 |
($1,118,000) |
($1,118,000) | |||
2013 |
($316,000) | ||||
2014 |
|||||
Annuities no longer taxed |
$11,700,000 |
$10,412,500 |
$9,810,668 |
$8,692,668 |
$8,376,668 |
Tax Rate |
10% |
10% |
10% |
10% |
10% |
Gambling Winnings Tax Revenue Reduction |
($1,170,000) |
($1,041,250) |
($981,067) |
($869,267) |
($837,667) |
The Department of Revenue Administration states that the Lottery Commission would have the data concerning the amount of gambling winnings taken as annuity payments versus in a lump sum. The Department states the provisions of this bill can be administered within the Department’s existing budget.