Revision: Jan. 22, 2013, midnight
HB 434-FN-A – AS INTRODUCED
2013 SESSION
10/09
HOUSE BILL 434-FN-A
AN ACT relative to renaming the business enterprise tax, capping the amount an employer is liable to pay under such tax, and annually reducing the rate of the tax.
SPONSORS: Rep. Hoell, Merr 23; Rep. Itse, Rock 10
This bill renames the business enterprise tax as the business income tax, requires that a taxpayer of the business income tax not pay greater amounts in any subsequent year, and lowers the rate of the tax incrementally over 20 years.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
13-0616
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT relative to renaming the business enterprise tax, capping the amount an employer is liable to pay under such tax, and annually reducing the rate of the tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Chapter Renamed; Business Income Tax. Amend the chapter heading of RSA 77-E to read as follows:
CHAPTER 77-E
BUSINESS [ENTERPRISE]INCOME TAX
2 References Changed; Business Enterprise Tax to Business Income Tax. Amend the following RSAs by replacing the term “business enterprise tax” with the term “business income tax”: 14-B:8, III; 15-A:5, I(d); 21-J:45, I(b); 77-A:7, I; 77-E:3-b; 77-E:5, II; 77-E:11, II; 77-F:1, III; 77-G:3; 77-G:5, I(i); 162-N:7; 198:39, I(b); and the section heading of 400-A:34-a.
3 Business Income Tax; Annual Rate Reduction. Amend RSA 77-E:2 to read as follows:
77-E:2 Imposition of Tax. A tax is imposed at the rate of 3/4 of one percent upon the taxable enterprise value tax base of every business enterprise; provided, however, that beginning July 1, 2013 and continuing for the following 20 tax years, the rate imposed shall be reduced by .025 percent from the previous year’s rate. The commissioner shall annually publish and enforce the rate as reduced according to this section.
4 Distribution of Funds; Education Trust Fund. Amend RSA 77-E:14, I to read as follows:
I. The commissioner shall determine the additional amounts of revenue produced by [an increase of .50 percent in the] two-thirds of the current rate of tax imposed by RSA 77-E:2 for each fiscal year and shall certify such amounts to the state treasurer by October 1 of that year for deposit in the education trust fund established by RSA 198:39.
5 New Paragraph; Business Income Tax; Cap on Annual Liability. Amend RSA 77-E:5 by inserting after paragraph II the following new paragraph:
III. Notwithstanding the calculation of tax under this chapter or any other contrary provision of law, a business enterprise liable for taxes under this chapter shall show in its return under this section the amount of business income taxes paid by such business in the previous tax year and shall reduce its liability in the current year, if applicable, to be not greater than the amount from the previous tax year. The commissioner shall accept all such returns as valid, shall enforce the resulting payments as due under RSA 77-E:6, and shall not require an additional return under RSA 77-E:7.
6 Effective Date. This act shall take effect July 1, 2013.
LBAO
13-0616
01/16/13
HB 434-FN-A - FISCAL NOTE
AN ACT relative to renaming the business enterprise tax, capping the amount an employer is liable to pay under such tax, and annually reducing the rate of the tax.
FISCAL IMPACT:
Due to time constraints, the Office of Legislative Budget Assistant is unable to provide a fiscal note for this bill, as introduced, at this time. When completed, the fiscal note will be forwarded to the House Clerk's Office.