Revision: Nov. 3, 2017, 12:23 p.m.
HB 1422-FN-A - AS INTRODUCED
2018 SESSION
18-2277
10/06
HOUSE BILL 1422-FN-A
AN ACT relative to the applicability of certain business tax rate changes.
SPONSORS: Rep. Ames, Ches. 9; Rep. Rosenwald, Hills. 30; Rep. Martin, Hills. 23; Rep. Tucker, Coos 5; Sen. D'Allesandro, Dist 20; Sen. Feltes, Dist 15
COMMITTEE: Ways and Means
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ANALYSIS
This bill adds a requirement that the business tax rate reductions adopted in 2017, 156 (HB 517) shall not take effect if the combined revenue growth in general and education funds for the fiscal year ending June 30, 2018 does not exceed the change in the Consumer Price Index for the period, plus one percent.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
18-2277
10/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
AN ACT relative to the applicability of certain business tax rate changes.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Applicability of the 2019 and 2021 Tax Period Reductions to Business Tax Rates; Contingency Added; Report.
I. By December 31, 2018, the legislative budget assistant, using the combined amount of revenue from the schedule of undesignated/unassigned fund balance for the general fund and education trust fund as contained in the audited comprehensive annual report performed pursuant to RSA 21-I:8, II(a), shall make a report to the secretary of state, the governor, speaker of the house of representatives, the senate president, the fiscal committee of the general court, the director of the office of legislative services, the commissioner of the department of revenue administration, and the commissioner of the department of administrative services, determining whether the rate of growth in the combined unrestricted general and education trust fund revenues collected for the fiscal year ending June 30, 2018 over the amount of combined unrestricted general and education trust fund revenue collected for the fiscal year ending June 30, 2017 is equal to or greater than the percent 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 plus one percent for the same 12-month period.
II. If the combined revenue growth determined under paragraph I is less than the Consumer Price Index for the period plus one percent then section 2 of this act shall take effect January 1, 2019 and the rate for the business profits tax under RSA 77-A:2 shall remain as 7.9 percent and the rate under the business enterprise tax under RSA 77-E:2 shall remain as .65 percent.
2 Contingent Repeal of Prospective Business Tax Rate Reductions. 2017, 156:213 through 2017, 156:217, relative to reductions to the business tax rates, are repealed.
I. Section 2 of this act shall effect as provided in paragraph II of section 1 of this act.
II. The remainder of this act shall take effect upon its passage.
18-2277
10/27/17
HB 1422-FN-A- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the applicability of certain business tax rate changes.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2019 | FY 2020 | FY 2021 | FY 2022 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Expenditures | $0 | $0 | $0 | $0 |
Funding Source: | [ X ] General [ X ] Education [ ] Highway [ ] Other | |||
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METHODOLOGY:
This bill amends the applicability of the 2019 and 2021 tax period reduction to business tax rates by adding a contingency utilizing the consumer price index growth. If the revenue growth is determined to be equal to the consumer price index growth plus one percent for the fiscal year ending June 30, 2017 to the fiscal year ending June 30, 2018, then the business tax rate reductions contained in Chapter 156, Laws of 2017 shall take effect. If the revenue growth is not met, the business tax rate reductions will not be implemented and the business profits tax rate will remain at 7.9 percent and the business enterprise tax rate will remain at 0.65 percent, resulting in an increase in general and education trust fund revenue. The Department has no means to determine if the revenue growth will meet the consumer price index plus one percnet to determine the potential impact on revenue.
AGENCIES CONTACTED:
Department of Revenue Administration