Bill Details - HB416 (2019)

HB 416 - AS INTRODUCED

 

 

2019 SESSION

19-0566

10/03

 

HOUSE BILL 416

 

AN ACT relative to the collection of private customer information of New Hampshire retailers by foreign states.

 

SPONSORS: Rep. Cordelli, Carr. 4; Rep. Hinch, Hills. 21; Rep. McGuire, Merr. 29; Rep. L. Ober, Hills. 37; Rep. Weyler, Rock. 13; Rep. Baldasaro, Rock. 5; Sen. Bradley, Dist 3

 

COMMITTEE: Ways and Means

 

-----------------------------------------------------------------

 

ANALYSIS

 

This bill clarifies New Hampshire's prohibition on requiring New Hampshire retailers from providing customer information for use in determining sales and use tax liability in a foreign state.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0566

10/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to the collection of private customer information of New Hampshire retailers by foreign states.

 

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

 

1  Findings and Purpose.  The general court finds that:

I.  On June 21, 2018, the United States Supreme Court issued its decision in South Dakota v. Wayfair, Inc., et al.  By a 5-4 majority, the Court overturned over 50 years of precedent that a retail seller must be physically present in a state before the state could impose its sales and use tax collection requirements.  This decision potentially exposes remote retail businesses, including those located within New Hampshire, to assertions by thousands of foreign taxing jurisdictions of various collection and remission requirements on remote retail businesses that were previously protected by the longstanding physical presence rule or to requiring retail businesses to provide them with private customer information.

II.  New Hampshire has a compelling governmental interest in protecting the privacy of an individual's personal information that may be used to facilitate the sale of goods and services within this state.

III.  New Hampshire also has a strong governmental interest in protecting its remote sellers and the private, personal information they possess from consumers from persons who may attempt to steal money or sensitive information from remote sellers by impersonating a foreign taxing jurisdiction or foreign taxing authority.

2  Qualifying Foreign Sales and Use Tax Statute; Prohibition.  Amend RSA 78-D:2, II to read as follows:

II.  No retailer shall provide to a foreign state any private customer information for use in the determination of sales or use tax liability of the customer in the foreign state or for use in the determination, collection, and remittance of sales or use tax by the retailer [with respect to a New Hampshire retail purchase transaction, unless the foreign state has first provided to the retailer written confirmation that the foreign state provided prior written notice of its intent to collect a use tax on such retail transaction to the commissioner of revenue administration, and no later than 60 days following the commissioner's receipt of such notice by the foreign state, the department of justice has submitted to the commissioner its determination that the foreign state's sales and use tax statutes:

(a)  Impose upon its residents a requirement to individually pay sales or use tax on the use, storage, or consumption of goods or services purchased in any other state;

(b)  Specifically identify the goods and services to which the use tax applies and exemptions to the use tax;

(c)  Require that the retailer or its affiliates have adequate physical presence to establish nexus with the foreign state for the imposition of an obligation of the retailer to determine, collect, and remit a sales and use tax with respect to purchases by foreign state residents;

(d)  Require every resident to submit annually to the foreign state a statement (i) identifying each and every item subject to such foreign state's sales and use tax purchased outside such foreign state for storage, use or consumption within such foreign state during an applicable period, (ii) stating the value of such items purchased, and (iii) including a statement under penalties of perjury that such resident complied with the requirement stated in this chapter;

(e)  Require its residents or the foreign state to provide the retailer at the time of a New Hampshire retail purchase transaction with information establishing whether or not the goods or services purchased in the state are intended to be used, stored, or consumed within the foreign state, and provide that any information supplied by its residents is irrefutably presumed to be correct and complete, and that the retailer may rely on such information regardless of the accuracy or completeness of such information;

(f)  Require that any agency of such foreign state responsible for enforcing such foreign state's sales or use tax shall annually audit, investigate, or examine not less than 10 percent of the total use tax returns filed by residents of such foreign state with respect to each year;

(g)  Require that any agency of such foreign state responsible for enforcing such foreign state's use tax shall conduct its audit, investigation, or examination practices with respect to residents' use tax returns in a manner that ensures that such practices are applied equally regardless of the state in which the sales transaction occurs, and that requires any such agency to file a public report annually demonstrating compliance with this nondiscrimination requirement;

(h)  Create an irrebutable presumption that, in the absence of voluntary information by the resident, the goods or services purchased are intended to be used in the state in which they are purchased; and

(i)  Explicitly impose use tax collection requirements on out-of-state retailers with respect to retail purchase transactions that are completed in those other states].

3  Effective Date.  This act shall take effect upon its passage.

Docket

Date Status
Jan. 3, 2019 Introduced 01/03/2019 and referred to Ways and Means HJ 3 P. 13
Jan. 16, 2019 Public Hearing: 01/16/2019 02:30 pm LOB 202
Jan. 22, 2019 Full Committee Work Session: 01/22/2019 02:00 pm LOB 202
Feb. 5, 2019 Full Committee Work Session: 02/05/2019 02:30 pm LOB 202
Feb. 21, 2019 Full Committee Work Session: 02/21/2019 01:00 pm LOB 202
March 13, 2019 Executive Session: 03/13/2019 10:00 am LOB 202
Retained in Committee

Action Dates

Date Body Type
Jan. 16, 2019 House Hearing
March 13, 2019 House Exec Session

Bill Text Revisions

HB416 Revision: 4644 Date: Jan. 7, 2019, 4:18 p.m.