SB 526-FN - AS INTRODUCED
2016 SESSION
\t16-2965
\t10/09
SENATE BILL\t526-FN
AN ACT\trequiring the department of resources and economic development to advertise changes to New Hampshire's business taxes.
SPONSORS:\tSen. Bradley, Dist 3; Sen. Boutin, Dist 16; Sen. Morse, Dist 22
COMMITTEE:\tFinance
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ANALYSIS
\tThis bill requires the department of resources and economic development to expend certain promotional and marketing funds for advertising the reductions to state business tax rates.
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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\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
\t16-2965
\t10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trequiring the department of resources and economic development to advertise changes to New Hampshire's business taxes.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 Department of Resources and Economic Development; Advertising of Business Tax Rate Reductions. For the biennium ending June 30, 2017, the commissioner of the department of resources and economic development shall utilize at least 20 percent of the funds appropriated for promotional and marketing expenses in class line 069 of the department's operating budget for advertising the state's 2016 reductions in the rates of the business enterprise tax and the business profits tax.
\t2 Effective Date. This act shall take effect upon its passage.
\t\t\t\t\t\t\t\t\t\t\t16-2965
\t\t\t\t\t\t\t\t\t\t\t1/25/16
SB 526-FN- FISCAL NOTE
AN ACT\trequiring the department of resources and economic development to advertise changes to New Hampshire's business taxes.
FISCAL IMPACT:
The Department of Resources and Economic Development states this bill, as introduced, will increase state expenditures by an indeterminable amount in FY 2016 and FY 2017 and have an indeterminable fiscal impact on state revenue in FY 2016 and each year thereafter. There is no impact on county and local expenditures or revenue.
METHODOLOGY:
The Department of Resources and Economic Development states this bill requires the Department to expend at least 20 percent of certain promotional and marketing funds for advertising the reductions to the business profits tax and business enterprise tax rates. The Department assumes it is to use promotional and marketing funds appropriated to its Division of Economic Development, which totals $100,000 in FY 2016 and $100,000 in FY 2017. The Department makes the following assumptions:
The Department states based on its appropriated funds, it would direct at least $20,000 ($100,000 *20%) of its marketing and promotional appropriation each year for the purpose of this bill. The Department does indicate that it consulted its marketing agency to determine the typical cost of a marketing campaign targeting the Greater Boston Area at least two times in a year using a mix of media (print, digital, radio and social). The estimated cost for this type of campaign starts at $200,000. The cost increases the more states added to the marketing campaign.