HB637 (2017) Detail

Relative to the threshold for filing a business enterprise tax return.


HB 637-FN-A - AS INTRODUCED

 

 

2017 SESSION

17-0361

10/09

 

HOUSE BILL 637-FN-A

 

AN ACT relative to the threshold for filing a business enterprise tax return.

 

SPONSORS: Rep. Silber, Belk. 2

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill provides that a business enterprise that does have to make a return for business profits taxes under RSA 77-A in a year is not required to pay business enterprise taxes.

 

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17-0361

10/09

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Seventeen

 

AN ACT relative to the threshold for filing a business enterprise tax return.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Business Enterprise Tax; Returns.  Amend RSA 77-E:5, I to read as follows:

I.(a)  Every business enterprise, subject to subparagraph (b), having gross business receipts in excess of $200,000 as defined by RSA 77-E:1, X, during the taxable period or the enterprise value tax base of which is greater than $100,000 shall, on or before the fifteenth day of the third month in the case of enterprises required to file a United States partnership tax return, and the fifteenth day of the fourth month in the case of all other business enterprises, following expiration of its taxable period, make a return to the commissioner.  For tax years beginning January 1, 2015, the commissioner shall biennially adjust these threshold amounts rounding to the nearest $1,000 based on the 2-year (24-month) percentage 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 using the amount published for the month of June in the year prior to the start of the tax year.

(b)  A business enterprise that is not required in any year to make a return under RSA 77-A for tax on its gross business profits shall not be required to make a return under this chapter, and for that year the business enterprise shall be exempt from any tax that may otherwise be imposed or due under RSA 77-E:2.

(c) All returns shall be signed by the business enterprise or by its authorized representative, subject to the pains and penalties of perjury and the penalties provided in RSA 21-J:39.

2  Effective Date.  This act shall take effect July 1, 2017.

 

LBAO

17-0361

1/24/17

 

HB 637-FN-A- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the threshold for filing a business enterprise tax return.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2018

FY 2019

FY 2020

FY 2021

   Appropriation

$0

$0

$0

$0

   Revenue

$0

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

   Expenditures

$0

$0

$0

$0

Funding Source:

  [ X ] General            [ X ] Education            [   ] Highway           [    ] Other

 

 

 

 

 

METHODOLOGY:

This bill amends the business enterprise tax law by stating that any business enterprise not required in any year to file a tax return on its gross business profits shall not be required to file a business enterprise tax (BET) return.  The Department of Revenue Administration used tax year 2014 data to determine the impact of this bill.  The Department identified returns that report a BET liability and indicated they did not need to file a business profits tax (BPT) return.  The Department then used the BET liability from these returns to estimate the potential decrease in BET revenue.  Based on the tax year 2014 data, 12 percent or 4,277 tax filers would be impacted, decreasing general fund and education trust fund by $2,121,735.

 

AGENCIES CONTACTED:

Department of Revenue Administration

 

 

Links

HB637 at GenCourtMobile

Action Dates

Date Body Type
Feb. 7, 2017 House Hearing
Feb. 23, 2017 House Exec Session
March 8, 2017 House Floor Vote

Bill Text Revisions

HB637 Revision: 854 Date: Jan. 25, 2017, 1:43 p.m.

Docket

Date Status
Jan. 5, 2017 Introduced 01/05/2017 and referred to Ways and Means HJ 3 P. 23
Feb. 7, 2017 Public Hearing: 02/07/2017 02:00 PM LOB 202
Feb. 23, 2017 Executive Session: 02/23/2017 LOB 202
March 8, 2017 Committee Report: Inexpedient to Legislate for 03/08/2017 (Vote 23-0; CC)
March 8, 2017 Inexpedient to Legislate: MA VV 03/08/2017 HJ 9 P. 53