HB 623-FN-A - AS AMENDED BY THE HOUSE
HOUSE BILL 623-FN-A
SPONSORS: Rep. Almy, Graf. 13; Rep. Mombourquette, Hills. 5; Rep. Schultz, Merr. 18; Rep. Fellows, Graf. 8; Rep. Horrigan, Straf. 6; Rep. T. Smith, Hills. 17; Rep. Edgar, Rock. 21; Rep. Porter, Hills. 1; Rep. Herbert, Hills. 43; Rep. Cloutier, Sull. 10
COMMITTEE: Ways and Means
This bill establishes the rates of the business profits tax and the business enterprise tax for taxpayer tax years ending on or after December 31, 2019 and for subsequent tax years, and repeals rate reductions effective in 2021.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
28Feb2019... 0416h 19-0689
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
77-A:2 Imposition of Tax. A tax is imposed at the rate of 7.9 percent upon the taxable business profits of every business organization.
77-E:2 Imposition of Tax. A tax is imposed at the rate of .675 percent upon the taxable enterprise value tax base of every business enterprise.
I. 2017, 156:215; relative to the rate of the business profits tax in 2021.
II. 2017, 156:216; relative to the rate of the business enterprise tax in 2021.
III. 2017, 156:217, II, relative to the applicability of the 2021 rates changes.
HB 623-FN-A- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENT #2019-0416h)
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
Estimated Increase / (Decrease)
[ X ] General [ X ] Education [ ] Highway [ ] Other
This bill sets the Business Profits Tax rate at 7.9 percent and the Business Enterprise Tax rate at 0.675 percent and repeals the rate reductions contained in Chapter 156, Laws of 2017. This bill is applicable for taxable periods ending on or after December 31, 2019.
The Department of Revenue Administration states the fiscal impact is indeterminable as the Department is not able to predict future business tax revenue. Based on the following assumptions, the Department is able to estimate a possible fiscal impact:
Applying the applicable tax rates results in the following impact:
FY 2018 Revenue with Current Law's 2019 and 2021 Rate Reductions
FY 2018 Revenues with Proposed Rate Increases
Estimated Fiscal Impact Per Year (proposed legislation compared to current law)
The Department notes that future revenue may be overstated or understated for future fiscal years depending on whether actual revenue is more or less than FY 2018.
Department of Revenue Administration
|Jan. 3, 2019||Introduced 01/03/2019 and referred to Ways and Means HJ 3 P. 22|
|Jan. 23, 2019||Public Hearing: 01/23/2019 10:00 am LOB 202|
|Feb. 7, 2019||Full Committee Work Session: 02/07/2019 09:00 am LOB 202|
|Feb. 12, 2019||Executive Session: 02/12/2019 03:00 pm LOB 202|
|Majority Committee Report: Ought to Pass with Amendment # 2019-0416h (Vote 12-7; RC)|
|Feb. 27, 2019||Majority Committee Report: Ought to Pass with Amendment # 2019-0416h for 02/27/2019 (Vote 12-7; RC) HC 13 P. 26|
|Minority Committee Report: Inexpedient to Legislate|
|Feb. 28, 2019||Amendment # 2019-0416h: AA DV 234-95 02/28/2019 HJ 7 P. 24|
|Feb. 28, 2019||Ought to Pass with Amendment 2019-0416h: MA RC 200-141 02/28/2019 HJ 7 P. 24|
|Feb. 28, 2019||Referred to Finance 02/28/2019 HJ 7 P. 27|
|March 22, 2019||Finance Division I Work Session: 03/22/2019 10:30 am LOB 212|
|March 27, 2019||Executive Session: 03/27/2019 10:00 am LOB 210-211|
|Retained in Committee|
|Jan. 23, 2019||House||Hearing|
|Feb. 12, 2019||House||Exec Session|
|Feb. 27, 2019||House||Floor Vote|
|March 27, 2019||House||Exec Session|