HB 673-FN-A - AS INTRODUCED
HOUSE BILL 673-FN-A
This bill imposes a 2.25 percent retail sales tax. The bill also imposes a 2.25 percent use tax on the use or storage of property in New Hampshire when no sales tax has been paid. Use tax is imposed, for example, when a New Hampshire business buys property out of state tax-free and uses it in New Hampshire. It also applies when a business makes personal use of property that it has purchased for resale or has manufactured for sale.
Sales made in New Hampshire for delivery out of state are taxable under this bill. Sales made out of state for delivery out of state are exempt from taxation. Sales for resale, casual sales, and sales of specific items such as gasoline, heating oil, medical supplies, and items of clothing under $175 are all exempt from taxation.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT establishing a sales and use tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter; Sales and Use Tax. Amend RSA by inserting after chapter 77-F the following new chapter:
SALES AND USE TAX
77-G:1 Definitions. The legislature intends that the definitions of terms in this chapter conform generally with the definitions contained in the Streamlined Sales and Use Tax Agreement. In this chapter:
I. “Casual sale” means an isolated or occasional sale of an item of tangible personal property by a person who is not regularly engaged in the business of making sales of that general type of property at retail where the property was obtained by the person making the sale, through purchase or otherwise, for his or her own use. Aircraft, snowmobiles, motorboats, and vessels, are hereby specifically excluded from the definition of casual sale.
II. “Commissioner” means the commissioner of the department of revenue administration.
III. “In this state” or “in the state” means within the exterior limits of the state of New?Hampshire.
IV. “Person” means an individual, partnership, society, association, joint stock company, corporation, public corporation or public authority, estate, receiver, trustee, assignee, referee, and any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise and any combination of the foregoing.
V. “Persons required to collect tax” or “persons required to collect any tax” imposed by this chapter means and includes every vendor of taxable tangible personal property or services. These terms shall also include any officer or employee of a corporation or of a dissolved corporation who as that officer or employee is under a duty to act for the corporation in complying with any requirement of this chapter and any member of a partnership.
VI. “Property and services the use of which is subject to tax” means and includes all property sold to a person within the state, whether or not the sale is made within the state, the use of which property is subject to tax under RSA 77-G:4 or will become subject to tax when such property is received by or comes into the possession or control of such person within the state.
VII. “Purchaser” means a person who purchases property or who receives services taxable under this chapter.
VIII. “Receipt” means the amount of the sales price of any property taxable under this chapter valued in money, whether received as money or otherwise, without any deduction for expenses or early payment discount, but excluding any amount for which credit is allowed by the vendor to the purchaser, and excluding any allowance in cash or by credit made upon the return of merchandise pursuant to warranty or the price of property returned by customers when the full price thereof is refunded either in cash or by credit, and excluding the price received for labor or services used in installing or applying to repairing the property sold, if separately charged or stated, and the cost of transportation from the retailer’s place of business or other point from which shipment is made directly to the purchaser provided those charges are separately stated and provided the transportation occurs by means of common carrier, contract carrier, or the United States mails.
IX. “Retail sale” or “sold at retail” means the sale of tangible personal property to any person for any purpose, other than for resale, except resale as a casual sale. Sales of tangible personal property to all contractors, subcontractors or repairpersons of materials and supplies for use by them in erecting structures for others, or building on, or otherwise improving, altering, or repairing real property of others are deemed to be retail sales.
X. “Sales,” “selling,” or “purchase” means any transfer of title or possession or both, exchange or barter, rental, lease or license to use or consume, conditional or otherwise, in any manner or by any means whatsoever for a consideration, or any agreement therefor; except professional, insurance, personal service transactions, advertising services and computer and data processing services where tangible personal property is transferred as part of such service transaction so long as no separate charge is made for the tangible personal property and so long as the value of the tangible personal property transferred is essentially an inconsequential element in relation to the value of the service transaction. The provisions of this paragraph shall be retroactive if to the benefit of the taxpayer.
XI. “Tangible personal property” means personal property which may be seen, weighed, measured, felt, touched or in any other manner perceived by the senses and shall include fuel, but shall not include rights and credits, insurance policies, bills of exchange, stocks and bonds, and similar evidences of indebtedness or ownership. Tangible personal property shall also include electricity unless RSA 83-E, the electricity consumption tax, is in effect.
XII. “Use” means the exercise of any right or power over tangible personal property by the purchaser thereof and includes, but is not limited to, the receiving, storage, or any keeping or retention for any length of time, withdrawal from storage, any installation, any affixation to real or personal property, or any consumption of that property.
XIII. “Vendor” means and includes:
(a) A person making sales of tangible personal property or services, the receipts from which are taxed by this chapter;
(b) A person maintaining a place of business in the state and making sales, whether at that place or business or elsewhere, to persons within the state of tangible personal property or services, the use of which is taxed by this chapter;
(c) A person who solicits business either by employees, independent contractors, agents or other representatives or by distribution of catalogs or other advertising matter and by reason thereof makes sales to persons within the state of tangible personal property or services, the use of which is taxed by this chapter;
(d) Any other person making sales to persons within the state of tangible personal property or services, the use of which is taxed by this chapter, who may be authorized by the commissioner to collect the tax imposed by this chapter; and
(e) The state of New Hampshire or any of its agencies, instrumentalities, public authorities, public corporations, including a public corporation created pursuant to agreement or compact with another state, or political subdivision when that entity sells services or property of a kind ordinarily sold by private persons.
77-G:2 Imposition of Sales Tax. Except as otherwise provided in this chapter, there shall be paid a tax of 2.25 percent upon the receipts from the sale of tangible personal property purchased at retail in this state.
77-G:3 Tax Bracket Schedule.
I. In addition to a tax of .0225 percent on each full dollar and partial dollars amounts $0.51 and up to $1.00; a tax of .017 percent shall be collected on each part of a dollar less than $0.50.
II. When several taxable articles are purchased together at the same time, the tax shall be computed on the total amount of the purchase of several taxable items.
77-G:4 Imposition of Use Tax. Unless property has already been or will be subject to the purchase tax under RSA 77-G:2, there is imposed on every person a use tax at the rate of 2.25 percent for the use within this state, except as otherwise exempted under this chapter:
I. Of any tangible personal property purchased at retail; and
II. Of any tangible personal property manufactured, processed or assembled by the user, if items of the same kind of tangible personal property are offered for sale by the user in the regular course of business, but the mere storage, keeping, retention or withdrawal from storage of tangible personal property or the use for demonstrational or instructional purposes of tangible personal property by the person who manufactured, processed or assembled such property shall not be deemed a taxable use by such person.
77-G:5 Administration; Rulemaking. In addition to other powers granted to the commissioner in this chapter and in RSA 21-J, the commissioner shall:
I. Collect the taxes, interest, additions to tax, and penalties imposed under this chapter and RSA 21-J.
II. Adopt rules, pursuant to RSA 541-A, relative to:
(a) The administration of the sales and use tax.
(c) The form of any returns, certificates and documents and the data which they must contain for the correct determination on computation of receipts and the tax assessed thereon.
III. Require any person required to collect taxes to keep detailed records of all receipts, received, charged or accrued, including those claimed to be nontaxable, and also of the nature, type, value, and amount of all purchases, sales, and other facts relevant in determining the amount of tax due and to furnish that information upon request to the commissioner.
IV. Publish and maintain, as the commissioner deems necessary, lists of specific items of tangible personal property which are found to be exempt from tax under RSA 77-G:2.
77-G:6 Liability for Tax. Every person required to collect any tax imposed by this chapter shall be personally liable for the tax imposed, collected or required to be collected, under this chapter. That person shall have the same rights in collecting the tax from the purchaser or regarding nonpayment of the tax by the purchaser as if the tax were a part of the purchase price of the property, and payable at the same time; provided, however, that the commissioner shall be joined as a party in any action or proceeding brought to collect the tax.
77-G:7 Principal and Agent; Joint Liability. When, in the opinion of the commissioner, it is necessary for the efficient administration of this chapter to treat any salesperson, representative, peddler, or canvasser as the agent of the vendor, distributor, supervisor, or employer under whom the person operates or from whom the person obtains tangible personal property sold by the person or for whom the person solicits business, the commissioner may, in the commissioner’s discretion, treat such agent as the vendor jointly responsible with the principal, distributor, supervisor, or employer for the collection and payment of the tax.
77-G:8 Payment and Return by Purchaser.
I. Where any purchaser has failed to pay a tax imposed by this chapter to the person required to collect the same, then in addition to all other rights, obligations, and remedies provided, the tax shall be payable by the purchaser directly to the commissioner and it shall be the duty of the purchaser to file a return with the commissioner and to pay the tax to the commissioner within 20 days of the date the tax was required to be paid.
II. The commissioner may, whenever the commissioner deems it necessary for the proper enforcement of this chapter, provide by rule that purchasers shall file returns and pay directly to the commissioner any tax herein imposed, at such times as returns are required to be filed and paid by persons required to collect the tax.
77-G:9 Transfers not in Course of Business; Notice; Lien.
I. Whenever a person required to collect the tax shall make a sale, transfer, or assignment in bulk of any part or the whole of such person’s business assets, otherwise than in the ordinary course of business, the purchaser, transferee, or assignee shall, at least 10 days before taking possession of the subject of the sale, transfer, or assignment, or payment therefor, notify the commissioner by registered mail of the proposed sale and of the price, terms, and conditions thereof whether or not the seller, transferer, or assignor, has represented, to, or informed the purchaser, transferee, or assignee that any tax is owed pursuant to this chapter, and whether or not the purchaser, transferee, or assignee has knowledge that the taxes are owing, and whether any taxes are in fact owing.
II. Whenever the purchaser, transferee, or assignee shall fail to give notice to the commissioner as required by paragraph I, or whenever the commissioner shall inform the purchaser, transferee, or assignee that a possible claim for the tax or taxes exists, any sums of money, property, or choses in action, or other consideration, which the purchaser, transferee, or assignee is required to transfer over to the seller, transferer, or assignor shall be subject to first priority right and lien for any taxes theretofore or thereafter determined to be due from the seller, transferer, or assignor to the state, and the purchaser, transferee, or assignee is forbidden to transfer to the seller, transferer, or assignor any sums of money, property, or chooses in action to the extent of the amount of the state’s claim. For failure to comply with this section, the purchaser, transferee, or assignee shall be personally liable for the payment to the state of any taxes theretofore or thereafter determined to be due to the state from the seller, transferer, or assignor, and the liability may be assessed and enforced in the same manner as the liability for tax under this chapter.
I. On or before September 1, 2017, or in the case of persons commencing business or opening new places of business after that date, within 3 days after the commencement or opening, every person required to collect any tax imposed by this chapter and every person purchasing tangible personal property for resale shall file with the commissioner a certificate of registration in a form prescribed by the commissioner. The commissioner shall issue, without charge, to each registrant a certificate of authority empowering the registrant to collect the tax. Each certificate shall state the place of business to which it is applicable. The certificate of authority shall be prominently displayed in the place of business of the registrant. A registrant who has no regular place of doing business shall attach the certificate to the registrant’s cart, stand, truck, or other merchandising device, or carry it on the registrant’s person. The certificate shall be nonassignable and nontransferable and shall be surrendered to the commissioner immediately upon the registrant’s ceasing to do business at the place named.
II. Any person who is not otherwise required to collect any tax imposed by this chapter and who makes sales to persons within the state of tangible personal property or services, the use of which is subject to tax under this chapter, may, if such person so elects, file a certificate of registration with the commissioner who may, in the commissioner’s discretion and subject to such conditions as the commissioner may impose, issue to such person a certificate of authority to collect the use tax imposed by this chapter.
77-G:11 Restrictions on Advertising.
I. No person required to collect any tax imposed by this chapter shall advertise or hold out to any person or to the public in general, in any manner, directly or indirectly, that the tax is not considered as an element in the price payable by the customer, or that such person will pay the tax, that the tax will not be separately charged and stated to the customer, or that the tax will be refunded to the customer.
II. Upon written application duly made and proof duly presented to the satisfaction of the commissioner showing that in the vendor’s particular business it would be impractical for such vendor to separately charge the tax to the customer, the commissioner may waive the application of the requirement herein as to such vendor.
III. Whenever reference is made in placards or advertisements or in any other publications to any tax imposed by this chapter, the reference shall be in substantially the following form: “sales and use tax”; except that in any bill, receipt, statement, or other evidence or memorandum of sale issued or employed by a person required to collect tax, if the tax is required to be stated separately thereon as provided in RSA 77-G:23, the word “tax” shall suffice.
77-G:12 Recordkeeping. Every person required to collect any tax imposed by this chapter shall keep records of every sale and of all amounts paid or charged or due thereon and of the tax payable thereon, in such form as the commissioner shall require. These records shall include a true copy of each sales slip, invoice, receipt, statement, or memorandum upon which RSA?77-G:23 requires that the tax be stated separately. The records shall be available for inspection and examination at any time upon demand by the commissioner or the commissioner’s duly authorized agent or employee and shall be preserved for a period of 3 years, except that the commissioner may consent to their destruction within that period or may require that they be kept longer.
I. Sales not within the taxing power of this state under the Constitution of the United?States.
II. Purchases of medicines and drugs sold pursuant to a doctor’s prescription for human use, oxygen for medical purposes, blood, blood plasma, artificial components of the human body, prosthetic devices, medical appliances, corrective appliances, corrective optical devices, dentures, hearing aids, seeing eye dogs, crutches, wheelchairs, hospital type beds, medical and dental devices and instruments, medical and dental equipment (including component parts thereof) and supplies used in treatment intended to alleviate human suffering or to correct, in whole or in part, human physical disabilities.
III. Casual sales.
IV. Purchases of all alcoholic beverages.
V. Purchases of motor fuels; taxed or exempted under RSA 260, provided, however, that jet fuel shall be taxed under this chapter.
VI. Rents for rooms and vehicles taxed under RSA 78-A and the transactions exempted therefrom.
VII. Purchases of meals, taxed or exempted under RSA 78-A.
VIII. Purchases made by persons who have been qualified under the supplemental Nutrition Assistance Program.
IX. Purchases made by persons who are qualified under the low and moderate income homeowners property tax relief program under RSA 198:56-61.
X. Persons who qualify for a local property tax elderly exemption under RSA 72.
XI. Purchases of equipment, supplies, and building materials made directly to volunteer fire departments, volunteer ambulance companies, or volunteer rescue squads for official use by the volunteer organizations.
XII. Funeral charges, including, but not limited to, sales of tangible personal property such as caskets, vaults, boxes, clothing, crematory urns, and other such funeral furnishings as are necessary incidents of the funeral, and other items sold as an accommodation rather than as an integral part of the funeral service or preparation therefor.
XIII. Tangible personal property purchased for use or consumption directly and exclusively, except for isolated or occasional uses, in commercial, industrial, or agricultural research or development in the experimental or laboratory sense. It shall be rebuttably presumed that uses are not isolated or occasional if they total more than 4 percent of the time the machinery or equipment is operated. Such research or development shall not be deemed to include the ordinary testing or inspection of materials or products for quality control, efficiency surveys, management studies, consumer surveys, advertising promotions, or research in connection with literary, historical, or similar projects.
XIV. Purchases of electricity, oil, gas, and other fuels used in a residence for all domestic uses including heating, and sales of such fuels when used by businesses and farms for farming and business purposes.
XV. All vessels over 50 tons.
XVI. All new items of clothing and shoes under $175 and fire, police, waitress, and nurse work uniforms and footwear.
XVII. All used clothing and shoes.
XVIII. Purchases of bibles, prayer books, missals, and other religious texts.
77-G:14 Transactions Not Covered. This chapter shall not cover the following transactions:
I. Private yard sales which consist of the casual sale of tangible personal property.
II. The transfer of tangible personal property to a corporation solely in consideration for the issuance of its stock, pursuant to a merger or consolidation effected under the laws of New?Hampshire or any other jurisdiction.
III. The distribution of property by a corporation to its stockholders as a liquidating dividend.
IV. The distribution of property by a partnership to its partners in whole or partial liquidation.
V. The distribution of property by a limited liability company to its members in whole or partial liquidation.
VI. The transfer of property to a corporation upon its organization in consideration for the issuance of its stock.
VII. The contribution of property to a partnership in consideration for a partnership interest.
VIII. The contribution of property to a limited liability company in consideration for a membership interest.
IX. The sale of tangible personal property where the purpose of the vendee is to hold the thing transferred as security for the performance of an obligation of the vendor.
X. The sawing of lumber owned by the person requesting the sawing or such person’s agent.
77-G:15 Organizations not Covered. Any purchase or service charged by or to any of the following or any use by any of the following are not subject to the sales and use taxes imposed under this chapter:
I. The state of New Hampshire, or any of its agencies, instrumentalities, public authorities, public corporations, including a public corporation created pursuant to agreement or compact with another state, or political subdivisions when it is the purchaser, user, or consumer, or when it is a vendor of services or property of a kind not ordinarily sold by private persons.
II. The United States of America, any of its agencies and instrumentalities, insofar as it is immune from taxation when it is the purchaser, user, or consumer, or when it sells services or property of a kind not ordinarily sold by private persons.
III. Organizations which qualify for exempt status under the provisions of Section 501(c)(3) of the United States Internal Revenue Code, as the same may be amended or redesignated, excepting sales, storage, or use in activities which are mainly commercial enterprises; provided, however:
(a) That the organization first shall have obtained a certificate from the commissioner stating that it is entitled to the exemption;
(b) That the sale or service or use is for the exempt purpose of such organization; and
(c) That the vendor keeps a record of the purchase price of each such separate purchase, the name of the purchaser, the date of each separate purchase, and the number of the certificate.
IV. Purchases of building materials and supplies to be used in the construction, reconstruction, alteration, remodeling, or repair of:
(a) Any building structure or other public work owned by or held in trust for the benefit of any governmental body or agency mentioned in paragraphs I and II of this section and used exclusively for public purposes;
(b) Any building or structure owned by or held in trust for the benefit of any organization described in paragraph III and used exclusively for the purposes upon which its exempt status is based; and
(c) Any building or housing project subject to the provisions of RSA 204-C, provided, however, that the governmental body or agency, the organization, or person has first obtained a certificate from the commissioner stating that it is entitled to the exemption and the vendor keeps a record of the purchase price of each separate purchase, the name of the purchaser, the date of each separate purchase, and the number of the certificate. In this paragraph, the words “building materials and supplies” shall include all materials and supplies consumed, employed or expended in the construction, reconstruction, alteration, remodeling, or repair of any building, structure, or other public work as well as the materials and supplies physically incorporated therein.
V. Organizations which qualify for exempt status under the provisions of Section 501(c)(4)-(13) and (19), and political organizations as defined in Section 527(e) of the United States Internal Revenue Code, as the same may be amended or redesignated, shall not be exempt from taxation of the purchase or use of tangible personal property as defined in RSA 77-G:1.
77-G:16 Property Exempt From Use Tax.
I. The following uses of property are not subject to the use tax imposed under this chapter:
(a) Property used by the purchaser in this state prior to July 1, 2016.
(b) Property purchased by the user while a nonresident of this state, except in the case of tangible personal property which the user, in the performance of a contract, incorporates into real property located in the state and except in the case of vessels under 50 tons and used in the waters of this state for at least 30 days.
(c) Property or services to the extent that a retail sales or use tax was legally due and paid thereon, without any right to a refund or credit thereof, to any other state or jurisdiction within any other state but only when it is shown that the other state or jurisdiction allows a corresponding exemption with respect to the purchase or use of tangible personal property or services upon which such a sales tax or use tax was paid to this state. To the extent that the tax imposed by this chapter is at a higher rate than the rate of tax in the first taxing jurisdiction, this exemption shall be inapplicable and the tax imposed by RSA 77-G:4 shall apply to the extent of the difference in the rates.
(d) Property withdrawn from inventory for the purpose of donating such property to an entity described in RSA 77-G:15, I, II, or III.
II. A person while engaged in any manner in carrying on in this state any employment, trade, business, or profession, not entirely in interstate or foreign commerce, shall not be deemed a nonresident with respect to the use in this state of property in that employment, trade, business, or profession.
77-G:17 Certificate or Affidavit of Exemption. Unless a vendor shall have taken from the purchaser a certificate, signed by the purchaser and bearing the purchaser’s name and address and the number of the purchaser’s registration certificate, to the effect that the property was purchased for resale or the purchaser prior to taking delivery, furnishes to the vendor any affidavit, statement, or additional evidence, documentary or otherwise, which the commissioner may require demonstrating that the purchaser is an exempt organization described in RSA 77-G:15, the purchase shall be deemed a taxable purchase at retail. Provided, however, the commissioner may authorize a purchaser, who acquires tangible personal property or services under circumstances which make it impossible at the time of acquisition to determine the manner in which the tangible personal property or services will be used, to pay the tax directly to the commissioner and waive the collection of the tax by the vendor. Provided, further, the commissioner shall authorize any contractor, subcontractor, or repairperson who acquires tangible personal property consisting of materials and supplies for use in erecting structures for others, or building on, or otherwise improving, altering, or repairing real property of others, to pay the tax directly to the commissioner and waive the collection of the tax by the vendor. No such authority shall be granted or exercised except upon application to the commissioner and the issuance by the commissioner of a direct payment permit. If a direct payment permit is granted, its use shall be subject to conditions specified by the commissioner and the payment of tax on all acquisitions pursuant to the permit shall be made directly to the commissioner by the permit holder.
77-G:18 Computing Receipts and Consideration.
I. The retail sales tax imposed under RSA 77-G:2 and the use tax imposed under RSA?77-G:4 when computed in respect to tangible personal property wherever manufactured, processed, or assembled and used by such manufacturer, processor, or assembler in the regular course of business within the state, shall be based on the price at which items of the same kind of tangible personal property are offered for sale by such manufacturer, processor, or assembler.
II. Tangible personal property which has been purchased by a resident of the state outside of this state for use outside of this state and subsequently becomes subject to the use tax imposed under this chapter, shall be taxed on the basis of the purchase price of the property, provided however:
(a) That where a taxpayer affirmatively shows that the property was used outside the state by the taxpayer for more than 6 months prior to its use within this state, the property shall be taxed on the basis of current market value of the property at the time of its first use within this state but the value of the property, for use tax purposes, may not exceed its cost.
(b) That the use tax on the tangible personal property brought into this state, other than for complete consumption or for incorporation into real property located in this state, and used in the performance of a contract or subcontract within this state by a purchaser or user for a period of less than 6 months may be based, at the option of the taxpayer, on the fair rental value of the property for the period of use within this state.
III. For purposes of RSA 77-G:4, I the tax shall be at the rate of 2.25 percent of the consideration given or contracted to be given for the property or for the use of the property adjusted in the same manner as is the sales price under the purchase tax to arrive at “receipts.”
IV. For purposes of RSA 77-G:4, II the tax shall be at the rate of 2.25 percent of the price at which items of the same kind of tangible personal property are offered for sale by the user.
I. Every person required to collect or pay tax under this chapter shall on or before the fifteenth day of each month make and file a return for the preceding month with the commissioner. The return of a vendor of tangible personal property shall show such vendor’s receipts from sales and also the aggregate value of tangible personal property sold, the use of which is subject to tax under this chapter.
II. The commissioner may extend, for cause shown, the time of filing any return for a period not exceeding 3 months on such terms and conditions as the commissioner may require.
III. The commissioner may permit or require returns to be made covering other periods upon such dates as the commissioner specifies. In addition, the commissioner may require payment of tax liability at such intervals and based upon such classifications as the commissioner may designate. In prescribing the other periods to be covered by the return or intervals or classifications for payment of tax liability, the commissioner may take into account the dollar volume of tax involved as well as the need for insuring the prompt and orderly collection of the taxes imposed.
IV. The commissioner may require amended returns to be filed within 20 days after notice and to contain the information specified in the notice.
77-G:20 Payment of Tax.
I. Every person required to file a return under this chapter shall, at the time of filing the return, pay to the commissioner the taxes imposed by this chapter as well as all other moneys collected by such person under this chapter.
II. All the taxes for the period for which a return is required to be filed or for such lesser interval as shall have been designated by the commissioner, shall be due and payable to the commissioner on the date established for the filing of the return for that period, or on the date for such lesser interval as the commissioner has designated, without regard to whether a return is filed or whether the return which is filed correctly shows the amount of receipts, or the value of property or services sold or purchased or the taxes due thereon.
77-G:21 Surety Bonds.
I. When the commissioner deems it necessary to protect the revenues to be obtained under this chapter, the commissioner may, after notice and hearing, require any vendor required to collect the tax imposed by this chapter to file with the commissioner a bond issued by a surety company authorized by the New Hampshire insurance department to do business in this state, in an amount fixed by the commissioner, to secure the payment of any tax, interest, or penalties due, or which may become due. The vendor shall file a bond within 10 days after the department has issued and mailed such notice. Surety bonds may be required in situations such as, but not limited to, failure to file returns, failure to make payments with returns at the time required by law, tender by a vendor of checks returned for insufficient funds, failure to pay interest and penalties assessed, vendors who are itinerant, transient or temporary, and any other situation which, in the discretion of the commissioner, renders the collection of the tax in jeopardy.
II. The surety on such bond shall be discharged from the liability accruing on the bond after the expiration of 60 days from the date on which the surety shall have lodged with the department a written request to be so discharged; but such request shall not discharge such surety from any liability already accrued or which shall accrue before the expiration of said 60-day period. The duration of surety bonds shall be for one year only, unless the requirement is cancelled or revised by the commissioner before the expiration of the one-year period.
III. In lieu of a bond, cash in an amount prescribed by the commissioner may be deposited with the state treasurer who may, at any time, upon instructions from the commissioner and without notice to the depositor, apply the cash deposited to any tax or interest or penalties due. Cash deposited in lieu of a surety bond shall not earn interest.
IV. Failure to comply with the provisions of this section shall result in the suspension of the vendor’s license, as provided in RSA 77-G:27.
77-G:22 Determination of Tax.
I. If a return required by this chapter is not filed, or if a return when filed, is incorrect or insufficient, the amount of tax due shall be determined and assessed by the commissioner from any information available. If necessary, the tax may be estimated on the basis of external indices, such as stock on hand, purchases, rental paid, location, scale of rents or charges, comparable rents or charges, type of accommodations and service, number of employees, or other factors.
II. The commissioner may provide by rule for the exclusion from taxable receipts of amounts representing sales where the contract of sale has been cancelled, the property returned, or the receipt or charge has been ascertained to be uncollectable or, in the case the tax has been paid upon that receipt or charge, for refund or credit of the tax so paid.
77-G:23 Collection of Tax From Purchaser. Every person required to collect the tax shall collect the tax from the purchaser when collecting the price to which it applies. If the purchaser is given any sales slip, invoice, receipt or other statement or memorandum of the price paid or payable, the tax shall be stated, charged, and shown separately on the first of the documents given to him or her. The tax shall be paid to the person required to collect it as trustee for and on account of the state.
77-G:24 Deferred Payment Purchases. The commissioner may provide that the tax upon receipts from purchases on the installment plan, seasonal purchases, or deferred payment purchases may be paid on the amount of each deferred payment and upon the date when the payment is received.
I. Claims for refund or credit may be made by a customer who has actually paid the tax or by a person required to collect the tax, who has collected and paid over the tax to the commissioner, provided that the claim is timely made in accordance with RSA 21-J:28-a and RSA 21-J:29. No actual refund of moneys shall be made to a person until such person establishes to the satisfaction of the commissioner, under such rules as the commissioner may adopt, that such person has repaid to the customer the amount for which the application for refund is made. The commissioner may, in lieu of any refund, allow credit on payments due from the claimant.
II. If the commissioner determines, on a petition for refund or otherwise, that a person has paid an amount of tax under this chapter which, as of the date of the determination, exceeds the amount of tax liability owing from the person to the state, with respect to the current and all preceding taxable periods, under any provision of this title, the commissioner shall forthwith refund the excess amount to the person together with interest as provided in RSA 21-J:28.
77-G:26 Proceedings to Recover Tax.
I. The commissioner may institute actions in the name of the state to recover any tax, interest on tax, additions to tax, or penalties imposed by this chapter.
II. In the collection of the tax imposed by this chapter, the commissioner may use all of the powers granted to tax collectors under RSA?80 for the collection of taxes, except that the tax imposed by this chapter shall not take precedence over prior recorded mortgages. The commissioner shall also have all of the duties imposed upon the tax collectors by RSA 80 that are applicable to the commissioner. The provisions of RSA?80:26 apply to the sale of land for the payment of taxes due under this chapter, and the state treasurer is authorized to purchase the land for the state. If the state purchases the land, the state treasurer shall certify the purchase to the governor, and the governor shall draw a warrant for the purchase price out of any money in the treasury not otherwise appropriated.
77-G:27 Suspension or Revocation of Certificates; Appeal.
I. The commissioner may, after notice and hearing, suspend or revoke the certificate of registration of any person required to collect the tax or may refuse to issue or renew any registration for failure to comply with this chapter or with any pertinent rules adopted hereunder.
II. Any person required to collect the tax aggrieved by a suspension, revocation, or refusal may appeal therefrom, in the same manner as provided in RSA 21-J:28-b for appeal for redetermination or reconsideration of assessments, within 10 days after written notice of the suspension, revocation, or refusal has been mailed or delivered to such person.
III. If the appealing person required to collect the tax files a bond running to the state as provided in RSA 77-G:21, then the suspension or revocation shall be inoperative during the appeal.
77-G:28 Liens. If any person required to pay or collect and transmit a tax under this chapter neglects or refuses to pay the same after demand, the amount, together with all penalties and interest provided for in this chapter and together with any costs that may accrue in addition thereto, shall be a lien in favor of the state of New Hampshire upon all property and rights to property, whether real or personal, belonging to such person. Such lien shall arise at the time demand is made by the commissioner of taxes and shall continue until the liability for such sum with interest and costs is satisfied or becomes unenforceable. No lien upon real estate for taxes imposed by this chapter is valid and binding against any person other than the taxpayer until notice of such lien stating the name and address of the taxpayer and the amount of the tax due shall have been filed and recorded in the registry of deeds in the grantor index in the county in which such real estate is located. Notwithstanding the provisions of any other law, the lien shall continue and shall be valid and binding until the liability for the sum, with interest and costs, is satisfied or becomes unenforceable.
77-G:29 Disposition of Revenues. The state treasurer shall deposit all revenues collected by the commissioner under this chapter into the general fund.
2 Effective Date. This act shall take effect July 1, 2016.
HB 673-FN-A FISCAL NOTE
AN ACT establishing a sales and use tax.
The Department of Revenue Administration states this bill, as introduced, will increase state revenue and expenditures by an indeterminable amount in FY 2016 and each year thereafter. There will be no fiscal impact on county and local revenue or expenditures.
The Department of Revenue Administration (DRA) states this bill implements a 2.25% sales and use tax in New Hampshire, effective July 1, 2016. The Department states the significant increase in the duties and responsibilities of DRA under this bill would require considerably more time than provided by the bill for the Department to implement this sales and use tax. There would be a substantial indeterminable additional cost for the Department to implement and administer this law for building expansion, computer system enhancements, and staffing increases. The Department does not have any data in order to calculate the value of all such products that would be taxable (and not taxable) and then compute the 2.25% tax thereon for the sales portion of this bill. The Department does not have data for what the future purchases of out-of-state qualifying products would be after July 1, 2016 for the use tax portion of the bill. The exact fiscal impact cannot be determined at this time.