SB 76-FN – AS AMENDED BY THE SENATE
03/09/11 0499s
2011 SESSION
10/03
SENATE BILL 76-FN
AN ACT relative to the authority of the department of revenue administration to adopt rules and to administer state tax laws.
SPONSORS: Sen. Sanborn, Dist 7; Sen. White, Dist 9; Sen. Bradley, Dist 3; Sen. Rausch, Dist 19; Sen. De Blois, Dist 18; Sen. Groen, Dist 6; Sen. Luther, Dist 12; Sen. Forsythe, Dist 4; Sen. Forrester, Dist 2; Rep. T. Keane, Merr 13; Rep. Cohn, Merr 6; Rep. D. McGuire, Merr 8; Rep. Bettencourt, Rock 4; Rep. Jennifer Coffey, Merr 6
COMMITTEE: Executive Departments and Administration
This bill requires the department of revenue administration to have express legislative authorization for increasing fees, establishing fine or penalty schedules, or imposing penalties on taxpayers. It requires the adoption of tax forms pursuant to RSA 541-A. The bill also requires the department to adopt a form for the summary filing of business profits and business enterprise taxes by a business organization, and removes the additional penalty for failure to make electronic payments.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/09/11 0499s
11-0777
10/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT relative to the authority of the department of revenue administration to adopt rules and to administer state tax laws.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Department of Revenue Administration; Rulemaking Authority; State Tax Laws. Amend RSA 21-J:13, I to read as follows:
I. The collection of state taxes administered by the department [under RSA 21-J:1, II(a)]. Provided however that the authority to administer state tax laws shall not permit the department to increase any fee, establish any fine or penalty schedule, or impose any penalty on the taxpayers of this state, unless expressly authorized in law. No general grant of authority for rulemaking shall be considered as express authorization. Any proposed administrative rule which would increase any fee, authorize the assessment of fines, or impose any penalty on taxpayers shall require legislative approval prior to adoption. The commissioner may propose legislation as provided in RSA 21-J:3, XI for obtaining express authorization or legislative approval.
2 New Paragraphs; Department of Revenue Administration; Rulemaking Authority; Tax Forms Added; Combined Business Tax Summary. Amend RSA 21-J:13 by inserting after paragraph XIII the following new paragraphs:
XIV. The requirements for all tax forms developed or approved by the department.
XV. A form which shall allow business organizations conducting business activities in this state to report business profits taxes and business enterprise taxes on one business tax summary form.
3 Repeal. The following are repealed:
I. RSA 21-J:13-a, relative to the exemption of department of revenue administration forms from rulemaking.
II. RSA 21-J:33, III, relative to the additional penalty for failure to make payments by electronic fund transfer.
III. RSA 541-A:21, V, relative to the exception for the department of revenue administration under RSA 21-J:13-a.
4 Effective Date. This act shall take effect 60 days after its passage.
LBAO
11-0777
Amended 03/17/11
SB 76 FN - FISCAL NOTE
AN ACT relative to the authority of the department of revenue administration to adopt rules and to administer state tax laws.
FISCAL IMPACT:
The Department of Revenue Administration states this bill, as amended by the Senate (Amendment #2011-0499s), will increase state expenditures by an indeterminable amount in FY 2012 and may decrease state revenues by an indeterminable amount in FY 2012 and each fiscal year thereafter. There will be no fiscal impact on county and local expenditures or revenue.
METHODOLOGY:
The Department of Revenue Administration states this bill requires the Department to have express legislative authority for establishing, imposing, or increasing any fee, fine, or penalty imposed on the taxpayers of New Hampshire; repeals the Department’s exemption from adopting rules, pursuant to RSA 541-A, for requirements on all forms; requires the Department to implement a form allowing businesses to report business profits taxes and business enterprise taxes on one business tax summary form; and repeals the Department’s authority to penalize taxpayers required to remit taxes by electronic fund transfer who fail to do so. The Department states the requirement to have express legislative authority for establishing, imposing, or increasing a fee, fine, or penalty is redundant with current law. The Department states they are currently unable to establish, impose, or increase a fee, fine, or penalty without the authorization of an enabling statute. Accordingly, the Department states this section of the proposed legislation will have no fiscal impact on the Department.
The Department states the repeal of the Department’s exemption from adopting rules, pursuant to RSA 541-A and the requirement to implement a new business tax form would require the Department to establish rules and design and distribute new tax forms. The Department states this section of the proposed legislation will increase state expenditures by an indeterminable amount as costs associated with the necessary programming changes to accommodate the new form(s) are incurred. However, the Department notes the remainder of costs associated with this section of the proposed legislation could be absorbed within the Department.
The Department states the penalty provision for failure to remit tax payments electronically had an effective date of August 13, 2010. Accordingly, the Department states the penalty provision lacks the necessary history from which to estimate the potential negative fiscal impact of its repeal on state revenues.