Revision: Nov. 13, 2017, 2:31 p.m.
HB 1679-FN - AS INTRODUCED
2018 SESSION
18-2134
10/06
HOUSE BILL 1679-FN
AN ACT relative to the real estate transfer tax to be paid on certain acquisitions of business entities.
SPONSORS: Rep. Cushing, Rock. 21; Rep. Edgar, Rock. 21; Rep. Weyler, Rock. 13
COMMITTEE: Ways and Means
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ANALYSIS
This bill provides for the tax on transfers of real property to apply to certain acquisitions of over 50 percent of the common stock of a business entity by another business entity.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
18-2134
10/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
AN ACT relative to the real estate transfer tax to be paid on certain acquisitions of business entities.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Tax on Transfers of Real Property; Exceptions; Certain Transfers. Amend RSA 78-B:2, XXII(b) to read as follows:
(b) The direct or indirect owners of the parties to the transfer remain the same before and after the transfer of the real estate, the respective ownership percentages of each are identical, and the combined assets and liabilities of the transferor and transferee remain the same except with respect to the real estate[.]; provided however that
(c) The exception under this paragraph shall not apply to transfers of title due to the acquisition by a business entity of more than 50 percent of the common stock of another business entity.
2 Effective Date. This act shall take effect July 1, 2018.
18-2134
11/9/17
HB 1679-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the real estate transfer tax to be paid on certain acquisitions of business entities.
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:
RSA 78-B:2, XXII provides a transfer of title from the owners of an entity to the entity or from the entity to the owners of the entity is exempt from the Real Estate Transfer Tax (RETT) as long as no consideration is exchanged, the respective ownership percentages of each are identical, and the combined assets and liabilities of the transferor and transferee remain the same except with respect to real estate. This bill would eliminate the exemption for transfers of title for business entity acquisitions of more than 50% of the common stock by another business entity.
The Department of Revenue Administration indicates the elimination of the exemption would be for a specific and small subset of transactions and it is unclear if the bill would result in any additional RETT being paid in the next four years. To the extent there is a transfer of title due to the aquisition of 50% of the common stock of a business entity by another business entity, the proposed bill would result in an indeterminable increase in RETT revenue.
The Public Utilities Commission states, although the bill concerns public utilities, the Commission has no information concerning the tax or revenues associated with it.
AGENCIES CONTACTED:
Department of Revenue Administration and Public Utilities Commission