Bill Text - HB1418 (2012)

Increasing the threshold amounts for taxation under the business enterprise tax.


Revision: Dec. 14, 2011, midnight

HB 1418-FN-A – AS INTRODUCED

2012 SESSION

12-2135

09/03

HOUSE BILL 1418-FN-A

AN ACT increasing the threshold amounts for taxation under the business enterprise tax.

SPONSORS: Rep. Sapareto, Rock 5; Rep. Weyler, Rock 8; Rep. Major, Rock 8; Rep. R. Ober, Hills 27; Rep. Bettencourt, Rock 4

COMMITTEE: Ways and Means

ANALYSIS

This bill increases the threshold amounts for taxation under the business enterprise tax.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

12-2135

09/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twelve

AN ACT increasing the threshold amounts for taxation under the business enterprise tax.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Business Enterprise Tax; Returns. Amend RSA 77-E:5 to read as follows:

77-E:5 Returns.

I. Every business enterprise having gross business receipts in excess of [$150,000] $200,000 as defined by RSA 77-E:1, X, during the taxable period or the enterprise value tax base of which is greater than [$75,000] $100,000, shall, on or before the fifteenth day of the third month in the case of enterprises required to file a United States corporation tax return, and the fifteenth day of the fourth month in the case of all other business enterprises, following expiration of its taxable period, make a return to the commissioner. All returns shall be signed by the business enterprise or by its authorized representative, subject to the pains and penalties of perjury and the penalties provided in RSA 21-J:39.

II. Every business enterprise shall in addition file a declaration of its estimated business enterprise tax for its subsequent taxable period; provided, however, if the estimated tax is less than [$200] $260, a declaration need not be filed; and provided further that a declaration shall be filed at the end of any quarter thereafter in which estimated tax exceeds [$200] $260. The declaration shall be filed when payments are due under RSA 77-E:6.

2 Effective Date. This act shall take effect July 1, 2012.

LBAO

12-2135

10/11/11

HB 1418-FN-A - FISCAL NOTE

AN ACT increasing the threshold amounts for taxation under the business enterprise tax.

FISCAL IMPACT:

    The Department of Revenue Administration states this bill will decrease state revenue by $6,224,000 in FY 2013, and by an indeterminable amount in FY 2014 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 would amend the Business Enterprise Tax (BET) filing thresholds to $200,000 gross business receipts or an Enterprise Tax Value Base (BETVB) of greater than $100,000. The Department analyzed FY 2010 data, which consisted of the 40,666 returns filed by entities that had any BETVB on returns filed during this period. Of those 40,666 returns, 18,217 returns had a BETVB of less than $100,000.01. The maximum revenue loss estimated for these changes would be $6,224,000, based upon the 18,217 returns that would not pay any BET due to the new $100,000 BETVB threshold. An estimate on the effect of increasing the filing threshold to $200,000 gross business receipts cannot be made as information on “gross business receipts” is not available on returns taxpayers have submitted in the past. The Department states the proposed bill takes effect on July 1, 2012, and the estimated decrease in revenue would begin in FY 2013. The Department is unable to determine the decrease in revenue for FY 2014 and beyond. The Department states with all of the presumed available BET credit carryforward outstanding, it is unlikely that BET offsets against BPT would be reduced to a degree that it could minimize the loss of BET revenue. In addition, the Department states the last section of the bill would change the requirement for an estimated payment from a total BET liability of $200 or more to $260. The Department states this should not have much of a fiscal impact as no one with less than $200,000 gross business receipts or a $100,000 of BETVB would be subject to the tax. Someone having a BETVB of $100,000 would have a $750 tax liability. While the loss of estimate payments may be minimal, the deferral of tax payments due to this increased threshold cannot be quantified.

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