HB 1544-FN-A-LOCAL - AS INTRODUCED
2016 SESSION
\t16-2464
\t09/10
HOUSE BILL\t1544-FN-A-LOCAL
AN ACT\testablishing a tax on revenues from natural gas transmission.
SPONSORS:\tRep. B. Tilton, Ches. 12
COMMITTEE:\tWays and Means
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ANALYSIS
\tThis bill establishes a tax on revenues received under contracts for natural gas transmission via in-state pipelines.
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Explanation:\tMatter added to current law appears in bold italics.
\t\tMatter removed from current law appears [in brackets and struckthrough.]
\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
\t16-2464
\t09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\testablishing a tax on revenues from natural gas transmission.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 New Chapter; Natural Gas Transmission Tax. Amend RSA by inserting after chapter 77-G the following new chapter:
CHAPTER 77-H
Natural Gas Transmission Tax
\t77-H:1 Definitions. In this chapter:
\t\tI. “Commissioner” means the commissioner of revenue administration.
\t\tII. “Department” means the department of revenue administration.
\t\tIII. "In-state pipeline" means the portion of any pipeline that is physically placed within the state of New Hampshire.
\t77-H:2 Tax on Revenues Paid Under Natural Gas Transmission Contracts. Every business organization, as defined in RSA 77-A:1, and business enterprise, as defined in RSA 77-E:1, III, receiving revenues under contracts for natural gas transmission via in-state pipelines during each calendar year shall pay to the department an annual tax of one percent on such revenues.
\t77-H:3 Fiscal Year; Returns and Declarations.
\t\tI. Returns of taxes shall be made to the commissioner on or before February 1 of each year for sales made during the prior calendar year, beginning on February 1, 2018, for sales made between January 1, 2017 and December 31, 2017.
\t\tII. The commissioner shall adopt rules pursuant to RSA 541-A relative to the prescribed form for filing returns under this chapter. Returns required by this chapter shall be made under the penalty of perjury.
\t77-H:4 Extension of Time for Returns. For good cause, the commissioner may extend the time within which a taxpayer is required to file a return, and if such return is filed during the period of extension no penalty may be imposed for failure to file the return at the time required by this chapter, but the taxpayer shall be liable for interest and late payment charges as prescribed in RSA 21-J:28, RSA 21-J:32, or RSA 21-J:33. Failure to file the return within the period of extension shall void the extension.
\t77-H:5 Information as to Filing of Returns. The commissioner shall, on the request of any inhabitant of the state, state the fact whether or not any person has filed a natural gas transmission tax return for the current or any prior year.
\t77-H:6 Interest. Any taxpayer who fails to make payment with a return when due shall be subject to interest computed as prescribed in RSA 21-J:28.
\t77-H:7 Reassessment by Department. The department shall reassess the amount of the tax in every case in which it appears in the examination of the returns that the amount paid is either higher or lower than the actual tax due. The department shall notify the taxpayer of any corrections made. If the department determines a deficiency, the amount of said deficiency and interest as prescribed in RSA 21-J:28 shall be forwarded by the taxpayer to the department within 15 days from the date of the required notice. If the reassessment results in a determination of overpayment, the amount of the excess shall be repaid to the taxpayer in the manner provided by RSA 21-J:28-a. All assessments made under this section shall be subject to the right of appeal as provided in RSA 21-J:28-b, and nothing contained in this section shall be construed to limit the power of the commissioner to make a later assessment under RSA 21-J:29 and to seek penalties for fraudulent returns as provided in RSA 77-H:8.
\t77-H:8 Penalty; Fraudulent or Incorrect Return. For purposes of the application of RSA 21-J:31 to this chapter, if a return is not filed when due and the failure to file a return when due is not a violation of RSA 21-J:39, then neither the $10 nor the $50 alternate penalties of RSA 21-J:31 shall apply to the return.
\t77-H:9 Expenses of Administration. The expense of administration of this chapter shall be paid out of the taxes collected under this chapter.
\t77-H:10 Disposal of Papers. The commissioner may destroy any tax returns on file with the department for more than 4 years which, in the commissioner’s opinion, are no longer of any value to the state.
\t77-H:11 Taxpayer Records.
\t\tI. Every taxpayer shall:
\t\t\t(a) Keep such records as may be necessary to determine the amount of the taxpayer’s liability under this chapter.
\t\t\t(b) Preserve such records for the period of 3 years or until any litigation or prosecution under this chapter is finally determined.
\t\t\t(c) Make such records available for inspection by the commissioner or his or her authorized agents, upon demand, at reasonable times.
\t\tII. Whoever violates the provisions of this section shall be subject to the penalties imposed under RSA 21-J:39.
\t77-H:12 Distribution of Revenue. The department of revenue administration shall forward taxes, interest, and penalties received under this chapter to the state treasurer for deposit in the highway fund and to be used to for the purposes of local road and bridge aid.
\t2 New Paragraph; Business Profits Tax Credit. Amend RSA 77-A:5 by inserting after paragraph XV the following new paragraph:
\t\tXVI. Taxes paid under RSA 77-H, the natural gas transmission tax.
\t3 New Section; Business Enterprise Tax Credit. Amend RSA 77-E by inserting after section 3-d the following new section:
\t77-E:3-e Natural Gas Transmission Tax Credit. The natural gas transmission tax shall be allowed as a credit against the tax due under this chapter unless used as a credit against the business profits tax under RSA 77-A:5, XVI.
\t4 Effective date. This act shall take effect on January 1, 2017.
\t\t\t\t\t\t\t\t\t\t\t16-2464
\t\t\t\t\t\t\t\t\t\t\t11/24/15
HB 1544-FN-A-LOCAL- FISCAL NOTE
AN ACT\testablishing a tax on revenues from natural gas transmission.
FISCAL IMPACT:
The Department of Revenue Administration states this bill, as introduced, will increase state restricted revenue, state expenditures, and local revenue by an indeterminable amount in FY 2017 and each year thereafter. There is no fiscal impact on county revenue or county and local expenditures.
METHODOLOGY:
The Department of Revenue Administration states this bill creates RSA 77-H, Natural Gas Transmission Tax that is to be deposited into the highway fund to be used for local road and bridge aid. The Department states the one percent tax rate would be applied to any revenues received under contracts for natural gas transmissions via in-state pipelines. The Department does not have any information on how much gas is currently being transmitted or how much would be transmitted in the future to determine any revenue impact. The gas transmission tax would be a credit against the business profits tax or the business enterprise tax, which will result in an indeterminable decrease in revenue from those taxes. The Department assumes the bill will increase state restricted revenue, state restricted expenditures and local revenue by an indeterminable amount. The Department states it will have indeterminable costs associated with the need to develop rules, create new forms, update IT systems, train existing auditors or possibly need to hire new auditors to administer this new tax on natural gas transmissions via in-state pipelines.
The New Hampshire Municipal Association states this bill will increase local revenues by an indeterminable amount.