Bill Text - HB1701 (2012)

Prohibiting New Hampshire from entering into or enforcing reciprocal agreements with other states to deny rights and privileges for nonpayment of taxes owed to another state.


Revision: Jan. 9, 2012, midnight

HB 1701-FN – AS INTRODUCED

2012 SESSION

12-2268

09/04

HOUSE BILL 1701-FN

AN ACT prohibiting New Hampshire from entering into or enforcing reciprocal agreements with other states to deny rights and privileges for nonpayment of taxes owed to another state.

SPONSORS: Rep. Manuse, Rock 5; Rep. Sapareto, Rock 5; Rep. Cohn, Merr 6; Rep. Bowers, Sull 3; Rep. Infantine, Hills 13; Rep. Sorg, Graf 3; Rep. Lambert, Hills 27; Rep. Itse, Rock 9; Sen. White, Dist 9

COMMITTEE: State-Federal Relations and Veterans Affairs

ANALYSIS

This bill prohibits New Hampshire from entering into or enforcing reciprocal agreements with other states to deny rights and privileges for nonpayment of taxes owed to another state.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

12-2268

09/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twelve

AN ACT prohibiting New Hampshire from entering into or enforcing reciprocal agreements with other states to deny rights and privileges for nonpayment of taxes owed to another state.

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

1 New Chapter; Prohibition on Certain Reciprocity Agreements With Other States. Amend RSA by inserting after chapter 12-M the following new chapter:

CHAPTER 12-N

PROHIBITION ON CERTAIN RECIPROCITY AGREEMENTS

WITH OTHER STATES

12-N:1 Prohibition on Certain Reciprocity Agreements With Other States. The state of New Hampshire is prohibited from entering into or enforcing reciprocal agreements with other states to deny rights and privileges for nonpayment of taxes owed to another state.

2 New Paragraph; Division of Motor Vehicles. Amend RSA 263:56-a by inserting after paragraph II the following new paragraph:

II-a. Under no circumstances shall the director suspend, revoke, or fail to renew a driver’s license for failure to pay taxes to a state other than New Hampshire.

3 Effective Date. This act shall take effect January 1, 2013.

LBAO

12-2268

01/03/12

HB 1701-FN - FISCAL NOTE

AN ACT prohibiting New Hampshire from entering into or enforcing reciprocal agreements with other states to deny rights and privileges for nonpayment of taxes owed to another state.

FISCAL IMPACT:

      The Department of Safety and Department of Administrative Services state this bill will have an indeterminable effect on state revenue and expenditures, and local revenue. There will be no fiscal impact on county revenue, or county or local expenditures.

METHODOLOGY:

    The Department of Safety states this bill prohibits the state from entering into or enforcing reciprocal agreements with other states to deny rights and privileges for nonpayment of taxes owed to another state. The Department states it is currently a member jurisdiction of the International Fuel Tax Agreement (IFTA), whereby motor carriers can license in New Hampshire and file a single motor fuel tax return, making a single payment, to the Department’s road toll bureau. The tax revenue is then allocated to the other members of the IFTA based on miles driven in each jurisdiction. Prior to the agreement, carriers were required to file a tax return in each jurisdiction in which they operated. New carriers cannot license with New Hampshire if they are suspended or revoked in another member jurisdiction. The Department states this bill will prohibit the state’s involvement in the IFTA, which the Department states would be in conflict with federal regulations that require participation in a multi-jurisdictional fuel tax agreement. The Department believes this prohibition would adversely affect the state’s eligibility for receiving federal highway funds and its ability to tax diesel fuel. The Department cannot estimate the fiscal impact this bill will have on state revenue and expenses, although it does state it collected $21.1 million in gasoline road tolls on diesel fuel in FY 2011. The Department also states any changes in certain highway fund revenues, potentially affected by this bill, would also effect the distribution of local highway aid pursuant to RSA 235:23.

    The Department of Administrative Services states this bill’s prohibition on reciprocal agreements would have an indeterminable fiscal impact on state revenue and expenditures, as it does not possess the information necessary to make an estimate or the information necessary to make such an estimate does not exist. The Department also states it is only aware of a single agreement which currently meets the definition of the agreements prohibited by the proposed bill, and that agreement is the IFTA at the Department of Safety.

    The Department of Revenue Administration, Department of Transportation, and Department of Health and Human Services state they cannot identify any impact this bill would have on state expenditures.