Revision: March 8, 2016, midnight
\t \t\tHB 634-FN-A - AS INTRODUCED
2015 SESSION
\t15-0365
\t10/04
HOUSE BILL\t\t634-FN-A
COMMITTEE:\tWays and Means
\tThis bill applies the interest and dividends tax to trusts, increases exemptions for the tax, and extends the interest and dividends tax to capital gains. The bill also increases the eligibility levels for the low and moderate income homeowners property tax relief.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
\t15-0365
\t10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT\trelative to applying the interest and dividends tax to trusts, increasing exemptions, and extending the tax to capital gains; and relative to homeowners property tax relief.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 Interest and Dividends Tax; Exemptions Increased; Capital Gains. Amend RSA 77:3, I to read as follows:
\t\tI. Taxable income is that interest, dividend, and capital gain income, as defined in RSA 77:4, received [from interest and dividends] during the tax year prior to the assessment date by:
\t\t\t(a) Individuals who are inhabitants or residents of this state for any part of the taxable year whose [gross] interest [and], dividend income [from all sources], and capital gain income, as defined in RSA 77:4, including income from a qualified investment company pursuant to RSA 77:4, V, exceeds [$2,400] $5,000 during that taxable period.
\t\t\t(b) Partnerships, limited liability companies, trusts and associations, the beneficial interest in which is not represented by transferable shares, whose [gross] interest [and], dividend [income from all sources] and capital gain income, as defined in RSA 77:4, exceeds [$2,400] $5,000 during the taxable year, but not including a qualified investment company as defined in RSA 77-A:1, XXI, or a trust comprising a part of an employee benefit plan, as defined in the Employee Retirement Income Security Act of 1974, section 3.
\t\t\t(c) Executors and fiduciaries deriving their appointment from a court of this state whose [gross] interest [and], dividend [income from all sources] and capital gain income, as defined in RSA 77:4, exceeds [$2,400] $5,000 during the taxable year.
\t2 Taxation of Incomes; What Taxable. Amend RSA 77:4, III-V to read as follows:
\t\tIII. Dividends, other than stock dividends paid in new stock of the partnership, limited liability company, trust, or association issuing the same, on shares in partnerships, limited liability companies, trusts, or associations the beneficial interest in which is represented by transferable shares.
\t\tIV. [Dividends, other than that portion of a dividend declared by corporations to be a return of capital and considered by the federal internal revenue service to be such, the exemption of which is permitted by RSA 77:7.] The capital gain reported on the taxpayer’s federal income tax return which shall be the amount, if any, that is equal to the positive sum of the net short-term capital gain or loss and the net long-term capital gain or loss reported on that return.
\t\tV. Amounts reported and taxed federally as [dividends or interest] interest, dividends, or capital gain income to a holder of an ownership interest in a qualified investment company as defined in RSA 77-A:1, XXI, a mutual fund, or a unit investment trust.
\t3 Taxation of Incomes; Exclusion of Certain Income; Employee Benefit Plans. Amend RSA 77:4-b to read as follows:
\t77:4-b [Interest and Dividend] Income of Employee Benefit Plans and Tax Deferred Investments Not Taxable. Notwithstanding any provisions of RSA 77:4 to the contrary, [interest and dividend income] interest, dividend, and capital gain income, as defined in RSA 77:4, received by an employee benefit plan as defined by the Employee Retirement Income Security Act of 1974, section 3, or any successor act enacted for the purpose of regulating employee benefit plans, or an individual retirement arrangement, Keogh plan or any other arrangement pursuant to which payment of federal tax on the income thereof and of the plan sponsors, participants and beneficiaries is deferred, shall at no time be considered taxable income under RSA 77:4, either to the plan or arrangement or to its sponsors, participants or beneficiaries, irrespective of when or whether all or any portion of such income is accumulated or expended for the benefit of, or distributed in any form or manner to, such sponsors, participants or beneficiaries.
\t4 Taxation of Incomes; Exclusion of Certain Income; Qualified Investment Companies, Mutual Funds, and Unit Investment Trusts. Amend RSA 77:4-d to read as follows:
\t77:4-d Special Rule for Qualified Investment Companies, Mutual Funds, and Unit Investment Trusts. Notwithstanding any other provision of RSA 77:4, the following income items shall not be treated as [dividends or interest] income taxable under this chapter:
\t\t[I.] Amounts accruing to the holder of an ownership interest in a qualified investment company, as defined in RSA 77-A:1, XXI, or a mutual fund or investment income earned or distributions received by the holder of an ownership interest in a unit investment trust, which qualified investment company, mutual fund, or unit investment trust invests solely in New Hampshire tax-exempt tax anticipation notes, bond anticipation notes, and other instruments exempt under New Hampshire law.
\t\t[II. Amounts reported and taxed federally as capital gains to the holder of an ownership interest in a qualified investment company, as defined in RSA 77-A:1, XXI, a mutual fund, or a unit investment trust.]
\t5 Taxation of Incomes; Exclusion of Certain Income; College Tuition Savings Plans. Amend RSA 77:4-e to read as follows:
\t77:4-e [Interest and Dividends] Income From Funds Invested in College Tuition Savings Plan Not Taxable. Notwithstanding any provision of RSA 77:4, income and distributions from any qualified tuition program as defined in the Internal Revenue Code of 1986, as amended, shall not be taxable under this chapter to the plan or to its sponsors, participants, or beneficiaries to the extent that the same is exempt from federal income taxation under section 529 of the Internal Revenue Code of 1986, as amended, as that section was in effect on July 1, 2003.
\t6 Taxation of Incomes; Excess Compensation. Amend RSA 77:4-g to read as follows:
\t77:4-g [Dividend]Excess Compensation. Excess compensation determined by audit of the department shall not be considered [a dividend] taxable income under this chapter unless such determination is accepted by the Internal Revenue Service.
\t7 Exemptions Increased. Amend RSA 77:5 to read as follows:
\t77:5 Exemptions. Each taxpayer shall have the following exemptions:
\t\tI. Income of [$2,400] $5,000.
\t\tII. An additional [$1,200] $2,500 if either or both taxpayers are 65 years of age or older on the last day of the tax year.
\t\tIII. An additional [$1,200] $2,500 if either or both taxpayers are blind.
\t\tIV. An additional [$1,200] $2,500 if either or both taxpayers are disabled, unable to work, and have not yet reached their sixty-fifth birthday.
\t8 Taxation of Incomes; Married Taxpayers; Joint Returns. Amend RSA 77:5-a to read as follows:
\t77:5-a Married Taxpayers; Joint Returns. A married taxpayer may claim the exemptions provided in RSA 77:5 for both self and spouse, regardless of the ownership of the [income from interest or dividends,] interest, dividend, or capital gain income, as defined in RSA 77:4, provided that both [husband and wife] spouses file a joint return.
\t9 Taxation of Incomes; Decedents Estates. Amend RSA 77:9 to read as follows:
\t77:9 Decedents’ Estates. The estates of deceased persons who last dwelt in this state shall be subject to the taxes imposed by this chapter upon all taxable income received by such persons during their lifetime, which has not already been taxed. The [income] interest, dividend, or capital gain income, as defined in RSA 77:4, received by such estates during administration shall be taxable to the estate, except such proportion thereof as equals the proportion of the estate to be distributed to non-taxable persons or organizations. The commissioner of revenue administration and executors and administrators of estates may effect a settlement by compromise of any question of doubt or dispute arising under this section.
\t10 Taxation of Incomes; Income From Trusts. Amend RSA 77:10 to read as follows:
\t77:10 Income From Trusts. [Interest and dividend income] The income received by estates held by trustees, any one of whom is an inhabitant of this state, or has derived his or her appointment from a court of this state, shall be subject to the taxes imposed by this chapter, except that interest, dividend, or capital gain income, as defined in RSA 77:4, received by estates held by trustees treated as grantor trusts under section 671 of the United States Internal Revenue Code shall be included in the return of their [grantor] owners, to the extent that the [grantor is an inhabitant or resident] persons to whom the income from the trust is payable, or for whose benefit it is accumulated, are inhabitants or residents of this state. [Income reported by, and taxed federally as interest or dividends to a trust beneficiary who is an individual inhabitant or resident of this state with respect to distributions from a trust that is not treated as a grantor trust under section 671 of the United States Internal Revenue Code shall be included as interest or dividends in the return of such beneficiary and subject to taxation in accordance with the provisions of this chapter.]
\t11 New Section; Taxation of Incomes; Nonresident Trustees. Amend RSA 77 by inserting after section 12 the following new section:
\t77:12-a Nonresident Trustees. If an inhabitant of this state receives income from one or more trustees, none of whom is an inhabitant of this state or has derived his or her appointment from a court of this state, such income shall be subject to the taxes imposed by this chapter if it would be taxable to such inhabitant if received by him or her from its source.
\t12 Taxation of Incomes; Guardians. Amend RSA 77:13 to read as follows:
\t77:13 Guardians, etc. RSA 77:9 through RSA [77:11] 77:12-a shall apply to guardians, conservators, trustees in bankruptcy, receivers, and assignees for the benefit of creditors, so far as apt, to the taxable income received by them and to their beneficiaries, and to corporations acting as trustees or in any other fiduciary capacity.
\t13 Taxation of Incomes; Application of Sections. Amend RSA 77:14-d to read as follows:
\t77:14-d Application of Sections. RSA 77:14-a to 77:14-c shall apply, so far as apt, to associations and trusts, but not to partnerships, limited liability companies, [and] associations, and trusts the beneficial interest in which is represented by transferable shares.
\t14 Taxation of Incomes; Returns and Declaration. Amend RSA 77:18, IV(a) and (b) to read as follows:
\t\t\t(a) Every individual whose total [interest and dividend income] interest, dividend, or capital gain income, as defined in RSA 77:4, is less than [$2,400] $5,000 for a taxable period.
\t\t\t(b) For joint filers whose total [interest and dividend income] ] interest, dividend, or capital gain income, as defined in RSA 77:4, is less than [$4,800] $10,000 for a taxable period.
\t15 Repeal. The following are repealed:
\t\tI. RSA 77:4-c, relative to sale or exchange of transferable shares not taxable.
\t\tII. RSA 77:7, relative to capital distribution.
\t16 Estimated Tax Payments. Any taxpayer under RSA 77 who has reported capital gain, as defined in RSA 77:4, on the taxpayer’s federal return for the tax payers last tax period ending on or before December 31, 2015, and who makes estimated tax payments under RSA 77:18, shall make estimated tax payments for 2016 based upon the taxpayer’s tax liability for such capital gain income that would have been incurred under RSA 77 in the taxpayers last tax period ending on or before December 31, 2015, if the provisions of RSA 77 regarding the taxation of capital gain income had been in effect for that period. The provisions of RSA 21-J:32 regarding payment of a penalty for underpayment of estimated tax shall apply to estimated tax payments required by this paragraph.
\t17 New Subdivision; Capital Gains Reserve Fund. Amend RSA 9 by inserting after section 13-g the following new subdivision:
Capital Gains Reserve Fund
\t9:13-h Capital Gains Reserve Fund.
\t\tI. There is hereby established within the general fund general ledger a special non-lapsing capital gains reserve fund account. The state treasurer shall invest funds in this account as authorized by RSA 6:8. The interest so earned shall be deposited as unrestricted general fund revenue.
\t\tII. On or before September 30 of each year, the department of revenue administration shall make 2 calculations:
\t\t\t(a) The amount of revenue collected during the most recently completed fiscal year, from the tax on capital gain income, as defined and applied pursuant to the provisions of RSA 77;
\t\t\t(b) The average annual amount of revenue collected during the 3 fiscal years immediately prior to the most recently completed fiscal year, from the tax on capital gain income, as defined and applied pursuant to the provisions of RSA 77. For the purposes of this calculation, the department shall estimate the annual amount of revenue that would have been collected from said tax for fiscal years prior to 2016 if said tax had been in effect for the duration of the fiscal year.
\t\tIII. The department shall notify the governor, the treasurer, the comptroller, the speaker of the house, and the senate president of the results of such calculations.
\t\tIV. Every biennial budget adopted by the general court shall include a provision specifying the amount of revenue estimated to be collected from the tax on capital gain income, as defined and applied pursuant to the provisions of RSA 77. In no instance shall such amounts, including the amount specified in RSA 31-A:4, exceed for each fiscal year of the biennium the 3-year average most recently calculated under subparagraph II(b).
\t\tV. If the total amount of revenue collected during the most recently concluded fiscal year from the tax on capital gain income, as defined and applied pursuant to the provisions of RSA 77, exceeds the total amount specified in the budget for that year, the comptroller shall, upon receipt of the notification specified in paragraph II, transfer the excess from the general fund to the capital gains reserve fund.
\t\tVI. If the total amount of revenue collected during the most recently concluded fiscal year from the tax on capital gain income, as defined and applied pursuant to the provisions of RSA 77, is less than the total amount specified in the budget for that year, the comptroller, upon receipt of the notification specified in paragraph II(b), transfer the difference from the capital gains reserve fund to the general fund, provided that a sufficient balance is available in the capital gains reserve fund. If the balance is insufficient, then the full balance of the capital gains reserve fund shall be transferred to the general fund. Transfers shall not be made from the capital gains reserve fund unless the conditions in this paragraph are met.
\t\tVII. If, after the requirements of paragraphs I-VI have been met and the balance remaining in the capital gains reserve fund is in excess of an amount equal to 100 percent of the actual capital gain tax revenue for the most recently completed 3-year average annual amount reported pursuant to paragraph II, then such excess shall be transferred, without further action, to the revenue stabilization reserve account established pursuant to RSA 9:13-e.
\t18 New Subparagraph; Treasury; Accounts. Amend RSA 6:12, I(b) by inserting after subparagraph (326) the following new subparagraph:
\t\t\t\t(327) Moneys deposited in the capital gains reserve fund under RSA 9:13-h.
\t19 New Paragraph; Business Profits Tax; Exclusion Added. Amend RSA 77-A:4 by inserting the following new paragraph:
\t\tXIX. A deduction equal to any capital gain income subject to taxation under RSA 77.
\t20 Homeowners Property Tax Relief; Income Limits Increased. Amend RSA 198:57, III to read as follows:
\t\tIII. An eligible tax relief claimant is a person who:
\t\t\t(a) Owns a homestead or interest in a homestead subject to the education tax;
\t\t\t(b) Resided in such homestead on [April 1 of] the date of the final tax bill as defined in RSA 76:1-a for the year for which the claim is made, except such persons as are on active duty in the United States armed forces or are temporarily away from such homestead but maintain the homestead as a primary domicile; and
\t\t\t(c) Realizes total household income of:
\t\t\t\t(1) [$20,000] $27,500 or less if a single person;
\t\t\t\t(2) [$40,000] $55,000 or less if a married person or head of a New Hampshire household.
\t21 Homeowners Property Tax Relief; Rebate Calculation Changed; Amend RSA 198:57, IV to read as follows:
\t\tIV. All or a portion of an eligible tax relief claimant’s state education property taxes, RSA 76:3, shall be rebated as follows:
\t\t\t(a) Multiply the total local assessed value of the claimant’s property by the percentage of such property that qualifies as the claimant’s homestead;
\t\t\t(b) Multiply [$100,000] $130,000 by the most current local equalization ratio as determined by the department of revenue administration;
\t\t\t(c) Multiply the lesser of the amount determined in subparagraph (a) or (b) by the education tax rate as shown on the tax bill under RSA 76:11-a;
\t\t\t(d) Multiply the product of the calculation in subparagraph (c) by the following percentage as applicable to determine the amount of tax relief available to the claimant:
\t\t\t\t(1) If a single person and total household income is:
\t\t\t\t\t(A) less than [$12,500] $20,000, 100 percent;
\t\t\t\t\t(B) [$12,500] $20,000 but less than [$15,000] $22,500, 60 percent;
\t\t\t\t\t(C) [$15,000] $22,500 but less than [$17,500]$25,000, 40 percent; or
\t\t\t\t\t(D) [$17,500] $25,000 but less than or equal to [$20,000] $27,500, 20 percent.
\t\t\t\t(2) If a head of a New Hampshire household or a married person and total household income is:
\t\t\t\t\t(A) less than [$25,000] $40,000, 100 percent;
\t\t\t\t\t(B) [$25,000]$40,000 but less than [$30,000] $45,000, 60 percent;
\t\t\t\t\t(C) [$30,000] $45,000 but less than [$35,000] $50,000, 40 percent; or
\t\t\t\t\t(D) [$35,000] $50,000 but less than or equal to [$40,000] $55,000, 20 percent.
\t\t\t(e) The amount determined by subparagraph (d) is the allowable tax relief in any year.
\t22 New Paragraphs; Homeowners Property Tax Relief; Adjustment for Inflation; Forms. Amend RSA 198:57 by inserting after paragraph VIII the following new paragraph:
\t\tIX. The amounts specified in paragraph III(c), paragraph IV(b), and paragraph IV(d) shall be adjusted annually for inflation and rounded to the nearest $100 by the commissioner of the department of revenue administration based on the average change in the Consumer Price Index for All Urban Consumers, Northeast Region as published by the Bureau of Labor Statistics, United States Department of Labor. The average change shall be calculated using the calendar year ending 12-months prior to the beginning of the program year.
\t\tX. Each year, on or about May 1, the department of revenue administration shall mail the current year forms necessary to apply for property tax relief to each homeowner who received property tax relief under the provisions of paragraph IV in the prior year.
\t23 Homeowners Property Tax Relief; Notice on Tax Bills Amend RSA 76:11-a to read as follows:
\t76:11-a Information.
\t\tI. The tax bill which is sent to every person taxed, as provided in RSA 76:11, shall show the rate for municipal, local education, state education, and county taxes separately, the assessed valuation of all lands and buildings for which said person is being taxed, and the right to apply in writing to the selectmen or assessors for an abatement of the tax assessed as provided under RSA 76:16. The department of revenue administration shall compute for each town and city the rates which are to appear on the tax bills and shall furnish the required information to the appropriate town or city.
\t\tII. The tax bill shall also contain a statement informing the taxpayer of the types of tax relief for which the taxpayer has the right to apply. The statement shall explicitly list the low and moderate income homeowners property tax relief program specified by RSA 198:57 and shall include information on how to apply for the program. The following statement shall be considered adequate:
\t“If you are elderly, disabled, blind, a veteran, or veteran’s spouse, or are unable to pay taxes due to poverty or other good cause, you may be eligible for a tax exemption, credit, abatement, or deferral, which can reduce your current property tax bill. For details and application information, contact (insert title of local assessing officials or office to which application should be made and deadline for application).
\tDepending on your income, you may also be eligible for a refund of some of your taxes under the low and moderate income homeowners property tax relief program. To find out how to get a refund, call the New Hampshire department of revenue administration at (603) 230-5000 or visit the department’s website. Applications for refunds are due by April 30.
\tThis statement shall be prominent [and], legible, and printed in at least 12-point boldface type, and may either be printed on the tax bill itself, or on a separate sheet of paper enclosed with the tax bill. A municipality may in its discretion choose to include more detailed information about the eligibility criteria for different forms of tax relief, provided, however, that the information in the above statement shall be considered a minimum.
\t\tIII. A town or city may, by majority vote of its governing body, include information additional to that required under paragraphs I and II on the tax bill as a means of further educating the public relative to the laws regarding property taxes.
\t24 Revenue Sharing; Increase From Capital Gains Revenue. Amend the introductory paragraph of RSA 31-A:4 to read as follows:
\t31-A:4 Determination of Amounts Returnable. The state treasurer shall distribute to the cities and towns each year the amount appropriated by the general court according to an equalized formula calculated by taking for each city and town the amount of local property taxes assessed, including current distributions of state revenues to local governments, exclusive of educational funds; dividing that sum by the local equalized valuation as determined by the department of revenue administration; and multiplying the result by the local population to produce an equalizing factor for each city and town. Such equalizing factors shall be added together to produce a total state sum. Each local equalizing factor shall be divided by the total state sum to produce for each city and town a normalized factor. Each such normalized factor shall be multiplied by the total amount to be distributed to the cities and towns to produce the annual share of each city or town, provided that said total amount shall include the first $25,216,000 of the revenue collected each year under RSA 77 beginning July 1, 2016, attributable to the application of the rate in RSA 77:1 on capital gains. Under no circumstances shall the amount appropriated under this section be less than $47,300,000 annually. Provided, however, that no city or town shall receive under the provisions of this section an amount less than the sum of:
\t25 Effective Date. This act shall take effect on July 1, 2015, and shall be applicable to tax periods ending after December 31, 2015.
\t\t\t\t\t\t\t\t\t\t\t\t\tLBAO
\t\t\t\t\t\t\t\t\t\t\t15-0365
\t\t\t\t\t\t\t\t\t\t\tRevised 02/05/15
HB 634-FN-A FISCAL NOTE
AN ACT\trelative to applying the interest and dividends tax to trusts, increasing exemptions, and extending the tax to capital gains; and relative to homeowners property tax relief.
FISCAL IMPACT:
METHODOLOGY:
The Department of Revenue Administration (DRA) states this bill amends the interest and dividends (I&D) tax law to make trusts taxable; include the taxation of capital gains income and establishes a capital gains reserve (CGR) fund within the state general fund based on the tax collected from capital gains income; increases the I&D thresholds and deductions from $2,400 to $5,000 for individuals, partnerships, limited liability companies, trusts, associations, executors, and fiduciary filers, and from $4,800 to $10,000 for joint filers; and increases I&D tax exemptions from $1,200 to $2,500 for a taxpayer who is older than 65, blind and/or disabled. The Department analyzed Tax Year 2012 data to estimate trust income adjusted for the new thresholds and increased deductions. The Department, however, was unable to match the trust information to those trust beneficiaries who now file and pay the I&D tax. Therefore, the DRA is unable to determine the difference between what the beneficiaries are currently filing and paying the I&D tax and what the trusts that filed and paid the I&D tax in Tax Year 2012. Currently, every beneficiary from a trust that receives a distribution is allowed to offset that income by a deduction of $2,400 for an individual and $4,800 for joint filers. After the deduction is applied to the income the beneficiary can elect to take a $1,200 exception if they are older than 65, blind and or disabled. As a result of the proposed changes, the Department estimates an increase from net capital gains after deductions in the amount of $100,379,500, less the proposed changes increasing the filing thresholds, deductions, and exemptions equal to $8,764,906.85 for a total increase in revenue in the amount of $91,614,593.15.
The Department has identified the following weaknesses in the data and methodology used to estimate the fiscal impact of this bill -
The Department states this bill establishes a capital gains reserve (CGR) fund. The state treasurer will invest funds in the new CGR Fund. The interest earned shall be deposited as unrestricted state general fund revenue. The Department is required to make two calculations for I&D taxes paid on capital gains tax revenue prior to September 30 each year. The two calculations, however, cannot be properly completed by DRA prior to September 30 because the DRA will not have the data needed to perform the calculations. I&D filers who file on extension do not have to file their returns until November leaving September as an incomplete tax year. The comptroller shall use the calculations provided by DRA to transfer any excess revenue collected from capital gains tax revenue during the most recent fiscal year from the state general fund into the CGR fund. If there is a deficit the comptroller shall transfer the difference from the CGR fund to the state general fund, provided there are sufficient funds. When the balance in the CGR Fund is in excess of an amount equal to 100% of the actual capital gain tax revenue for the most recently completed 3-year average annual amount, the excess shall be transferred into the stabilization reserve account. The DRA is unable to calculate the 3-year average annual amount of capital gain tax revenues collected because the DRA does not have the data available
The Department states this bill also increases the income thresholds under the low and moderate income homeowners property tax relief program. The total household income is increased from $20,000 to $27,500 for a single person and from $40,000 to $55,000, if married or head of NH household. The claimant’s property threshold is raised from $100,000 to $130,000, and the Department states increasing the property thresholds also increases the percentage of property relief the claimant shall receive. The combined effects of these changes are indeterminable. It is anticipated that there will be an increase in the number of allowed claims, as well as an additional approximate 30% increase in the total claims amount granted.
The Department states this bill would also dedicate the first $25,216,000 of revenue attributable to the proposed application of the I&D tax for capital gains income to state revenue sharing distributions pursuant to RSA 31-A:4. The Department states the limiting factor of revenue sharing in RSA 34-A:4 is a minimum of $47,300,000, and as proposed the first $25,216,000 of revenue from capital gains taxes would become part of that revenue sharing amount.