Revision: March 21, 2011, midnight
HB 229-FN-A – AS AMENDED BY THE HOUSE
17Mar2011… 0515h
2011 SESSION
09/04
HOUSE BILL 229-FN-A
AN ACT repealing the tax on gambling winnings.
SPONSORS: Rep. C. Christensen, Hills 19; Rep. Mirski, Graf 10; Rep. Renzullo, Hills 27; Rep. Kappler, Rock 2; Rep. Hinch, Hills 19; Sen. White, Dist 9; Sen. Morse, Dist 22; Sen. Carson, Dist 14
This bill repeals the tax on gambling winnings.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
17Mar2011… 0515h
11-0065
09/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT repealing the tax on gambling winnings.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Repeal. The following are repealed:
I. RSA 21-J:13, XIII, relative to rulemaking for collection of taxes on gambling winnings.
II. RSA 77:38 – 77:50, relative to taxation of gambling winnings.
2 New Section; Gambling Winnings Tax Exempt. Amend RSA 284 by inserting after section 21-r the following new section:
284:21-rr Winnings Tax Exempt. Notwithstanding any other provisions of law to the contrary, a recipient of any money or prize awarded pursuant to the provisions of RSA 284:21-i shall be exempt from any tax imposed thereon by the state of New Hampshire.
3 Applicability. This act shall apply to all gambling winnings received on or after the effective date of this act.
4 Effective Date. This act shall take effect 14 days after its passage.
LBAO
11-0065
Revised 03/07/11
HB 229 FISCAL NOTE
AN ACT repealing the tax on gambling winnings.
FISCAL IMPACT:
The Department of Revenue Administration states this bill will decrease State general fund revenue by $3,400,000 in FY 2012 and each year thereafter. The Lottery Commission states this bill will decrease State general fund revenue by $1,300,000 in FY 2011, $2,600,000 in FY 2012 and by $2,800,000 in FY 2013 and each 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 repeals the tax on gambling winnings effective upon passage. The Department is unable to determine the fiscal impact in FY 2011 since without applicability language the passage date of the bill would determine which winnings would not be subject to the tax. The Department states during FY 2011, the tax on gambling winnings is projected to generate $3,400,000 in revenue, and this revenue would be eliminated in FY 2012 and each year thereafter. The Department states it can administer the bill without any additional costs.
The Lottery Commission states this bill would exempt all lottery winnings from the gambling tax. The Commission assumes an effective date of January 1, 2011 which would reduce FY 2011 tax receipts by approximately $1,300,000. Based on projected lottery sales for FY 2012 and 2013, the Lottery Commission estimates tax revenue would decrease by $2,600,000 in FY 2012, and $2,800,000 in FY 2013. The Lottery Commission states repealing the tax would have a positive impact on lottery sales, although the exact amount cannot be determined at this time.
The Racing and Charitable Gaming Commission (RCGC) states it is required to pay claims on money received from race tracks for unredeemed pari-mutuel pool tickets, which are subject to tax withholdings for net winnings exceeding $10. The RCGC estimates these payouts total less that $500 per year; therefore the fiscal impact to the State is negligible.