HB 386-FN-A - AS INTRODUCED
2015 SESSION
15-0132
09/05
HOUSE BILL 386-FN-A
AN ACT reducing the rate of the business profits tax.
SPONSORS: Rep. Spillane, Rock 2; Rep. Tasker, Rock 2; Rep. Duarte, Rock 2; Rep. Barnes, Rock 8; Rep. Hannon, Straf 25; Rep. Moore, Hills 21; Rep. C. McGuire, Merr 29; Rep. Itse, Rock 10; Rep. Schleien, Hills 37; Rep. Martin, Merr 23
This bill reduces the rate of the business profits 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
15-0132
09/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT reducing the rate of the business profits tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Business Profits Tax; Imposition of Tax. Amend RSA 77-A:2 to read as follows:
77-A:2 Imposition of Tax. A tax is imposed at the rate of [8.5] 7 percent upon the taxable business profits of every business organization.
2 Applicability. Section 1 of this act shall apply to returns and taxes due under RSA 77-A on account of taxable periods ending on or after July 1, 2015.
3 Effective Date. This act shall take effect July 1, 2015.
LBAO
15-0132
01/07/15
HB 386-FN-A - FISCAL NOTE
AN ACT reducing the rate of business profits tax.
FISCAL IMPACT:
The Department of Revenue Administration states this bill, as introduced, will reduce state general and education trust fund revenue by $60,088,235 in FY 2016 and each year thereafter. There will be no fiscal impact on state, county, and local expenditures, or county and local revenue.
METHODOLOGY:
The Department of Revenue Administration states this bill reduces the Business Profits Tax (BPT) rate from the current rate of 8.5% to 7.00% effective July 1, 2015. The Department states the estimated BPT revenue for FY 2015 is $340,500,000. Divided by the current BPT rate of 8.5%, DRA estimates the taxable base at $4,005,882,353. Applying the taxable base to the proposed BPT rate of 7.00% would result in total revenue of approximately $280,411,765, a reduction of $60,088,235 in FY 2016 and each year thereafter.