SB190 (2019) Detail

(Second New Title) relative to apportionment of sales under the business profits tax and the apportionment of dividends under the business enterprise tax and establishing a committee to study the apportionment of gross business profits under the business profits tax.


CHAPTER 342

SB 190-FN - FINAL VERSION

 

03/07/2019   0624s

6Jun2019... 2182h

06/27/2019   2531CofC

06/27/2019   2671EBA

2019 SESSION

19-0625

10/01

 

SENATE BILL 190-FN

 

AN ACT relative to apportionment of sales under the business profits tax and the apportionment of dividends under the business enterprise tax and establishing a committee to study the apportionment of gross business profits under the business profits tax.

 

SPONSORS: Sen. Birdsell, Dist 19; Sen. D'Allesandro, Dist 20

 

COMMITTEE: Ways and Means

 

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AMENDED ANALYSIS

 

This bill modifies the apportionment to this state of sales of a business organization with activity in other states and the apportionment of dividends of a business enterprise based on sales made within this state.  The bill also establishes a committee to study apportionment under the business profits tax and monitor the laws and legislation of other states concerning market-based sourcing.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/07/2019   0624s

6Jun2019... 2182h

06/27/2019   2531CofC

06/27/2019   2671EBA 19-0625

10/01

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to apportionment of sales under the business profits tax and the apportionment of dividends under the business enterprise tax and establishing a committee to study the apportionment of gross business profits under the business profits tax.

 

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

 

342:1  Business Profits Tax; Apportionment of Sales.  Amend RSA 77-A:3, I(c) to read as follows:

(c)  The percentage of the total sales, including charges for services, made by the business organization everywhere as is made by it within this state[.]:

(1)  Sales of tangible personal property are made in this state if the property is delivered or shipped to a purchaser, other than the United States government, within this state regardless of f.o.b. point or other conditions of sale, or the property is shipped from an office, store, warehouse, factory or other place of storage in this state and [(1)] (A) the purchaser is the United States government, or [(2)] (B) the business organization is not taxable in the state of the purchaser.

(2)  Sales other than sales of tangible personal property are in this state if the [income-producing activity is performed in this state, or the income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance] business organization's market for the sales is in this state, as follows:

(A)  In the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this state;

(B)  In the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this state;

(C)  In the case of sale of a service, if and to the extent the service is delivered to a location in this state;

(D)  In the case of sale, rental, lease, or license of intangible property, if and to the extent the property is used in this state;

(E)  In the case of interest income, if and to the extent the debtor or encumbered property is located in this state;

(F)  In the case of dividend income, if and to the extent the business organization's commercial domicile is in this state; and

(G)  In the case of other income, if and to the extent the income is derived from sources in this state.

(3)  In the case of sales other than sales of tangible personal property, if the state or states of assignment cannot be determined, the state or states of assignment shall be reasonably approximated.

(4)  In the case of sales other than sales of tangible personal property, if the taxpayer is not taxable in a state to which a sale is assigned, or if the state of assignment cannot be determined or reasonably approximated, such sale shall be excluded from the denominator of the sales factor.

342:2  Business Enterprise Tax; Apportionment of Dividends.  Amend RSA 77-E:4, I(c)(3) to read as follows:

(3)  The percentage of the total sales, including charges for services, made by the business enterprise everywhere as is made by it within this state[.]:

(A) Sales of tangible personal property are made in this state if the property is delivered or shipped to a purchaser, other than the United States government, within this state regardless of free on board point or other conditions of sale, or the property is shipped from an office, store, warehouse, factory or other place of storage in this state and [(A)] (i) the purchaser is the United States government, or [(B)] (ii) the business enterprise is not taxable in the state of the purchaser.

(B)  Sales other than sales of tangible personal property are in this state if the [revenue-producing activity is performed in this state, or the revenue-producing activity is performed both in and outside this state and a greater proportion of the revenue-producing activity is performed in this state than in any other state, based on costs of performance] business enterprise’s market for the sales is in this state, as follows:

(i)  In the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this state;

(ii)  In the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this state;

(iii)  In the case of sale of a service, if and to the extent the service is delivered to a location in this state;

(iv)  In the case of sale, rental, lease, or license of intangible property, if and to the extent the property is used in this state;

(v)  In the case of interest income, if and to the extent the debtor or encumbered property is located in this state;

(vi)  In the case of dividend income, if and to the extent the business enterprise’s commercial domicile is in this state; and

(vii)  In the case of other income, if and to the extent the income is derived from sources in this state.

(C)  In the case of sales other than sales of tangible personal property, if the state or states of assignment cannot be determined, the state or states of assignment shall be reasonably approximated.

(D)  In the case of sales other than sales of tangible personal property, if the taxpayer is not taxable in a state to which a sale is assigned, or if the state of assignment cannot be determined or reasonably approximated, such sale shall be excluded from the denominator of the sales factor.

342:3  Applicability.  Sections 1 and 2 of this act shall apply to taxable periods ending on or after December 31, 2021.

342:4  Legislative Study Committee on Apportionment.  There is established a committee to study the apportionment of gross business profits under the business profits tax.

I.  The members of the committee shall be as follows:

(a)  Two members of the senate, appointed by the president of the senate.

(b)  Three members of the house of representatives, appointed by the speaker of the house of representatives.

II.  Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

III.  The committee shall study apportionment among states pursuant to RSA 77-A:3 of gross business profits under the business profits tax.  The committee shall also monitor the laws and legislation of other states concerning market-based sourcing and may study any other related issues.  The committee may solicit input or testimony from any person or organization the committee deems relevant to the study.

IV.  The members of the committee shall elect a chairperson from among the members.  The first meeting shall be called by the first-named senate member.  The first meeting of the committee shall be held within 45 days of the effective date of this section.  Three members of the committee shall constitute a quorum.

V.  The committee shall report its findings and any recommendations for proposed legislation to the president of the senate, the speaker of the house of representatives, the senate clerk, the house clerk, the governor, and the state library on or before November 1, 2020.

342:5  Effective Date.

I.  Sections 1 and 2 of this act shall take effect January 1, 2021.

II.  The remainder of this act shall take effect upon its passage.

 

Approved: September 06, 2019

Effective Date:

I. Sections 1 and 2 shall take effect January 1, 2021.

II. Remainder shall take effect September 6, 2019.

 

 

Links


Date Body Type
Feb. 20, 2019 Senate Hearing
March 7, 2019 Senate Floor Vote
April 9, 2019 House Hearing
May 28, 2019 House Exec Session
May 28, 2019 House Exec Session
House Floor Vote
June 5, 2019 House Floor Vote
June 13, 2019 House Floor Vote
June 13, 2019 House Floor Vote
June 27, 2019 House Floor Vote
June 27, 2019 Senate Floor Vote

Bill Text Revisions

SB190 Revision: 6720 Date: Dec. 4, 2019, 9:42 a.m.
SB190 Revision: 6465 Date: July 10, 2019, 10:05 a.m.
SB190 Revision: 6212 Date: June 17, 2019, 8:15 a.m.
SB190 Revision: 5495 Date: March 12, 2019, 2:46 p.m.
SB190 Revision: 5172 Date: Jan. 22, 2019, 9:03 a.m.

Docket


Sept. 6, 2019: II. Remainder Effective 09/06/2019


Jan. 1, 2021: I. Sections 1 and 2 Effective 01/01/2021


Sept. 6, 2019: Signed by the Governor on 09/06/2019; Chapter 0342


June 27, 2019: Enrolled (In recess 06/27/2019); SJ 21


June 27, 2019: Enrolled 06/27/2019 HJ 20 P. 56


June 27, 2019: Enrolled Bill Amendment # 2019-2671e Adopted, VV, (In recess of 06/27/2019); SJ 21


June 27, 2019: Enrolled Bill Amendment # 2019-2671e: AA VV 06/27/2019 HJ 20 P. 56


June 27, 2019: Conference Committee Report # 2019-2531c, Adopted, VV; 06/27/2019; SJ 21


June 27, 2019: Conference Committee Report 2531c: Adopted, VV 06/27/2019 HJ 20 P. 4


June 13, 2019: Conference Committee Report # 2019-2531c Filed 06/13/2019; House Amendment + New Amendment


June 13, 2019: Conference Committee Report # 2019-2531c Filed 06/13/2019; House Amendment + New Amendment


June 17, 2019: ==RECONVENE== Committee of Conference Meeting: 06/17/2019, 01:00 pm, Room 100, SH


June 17, 2019: ==RECESSED== Committee of Conference Meeting: 06/17/2019, 10:30 am, Room 100, SH


June 13, 2019: Speaker Appoints: Reps. Malloy, Griffith, Major, Abrami 06/13/2019 HJ 19 P. 2


June 13, 2019: House Accedes to Senate Request for CofC (Rep. Almy): MA VV 06/13/2019 HJ 19 P. 2


June 6, 2019: President Appoints: Senators D'Allesandro, Dietsch, Birdsell; (In Recess 06/06/2019); SJ 20


June 6, 2019: Sen. Feltes Moved Nonconcur with the House Amendment; Requests C of C, MA, VV; (In Recess 06/06/2019); SJ 20


June 6, 2019: Ought to Pass with Amendment 2019-2182h (NT): MA VV 06/06/2019 HJ 18 P. 27


June 6, 2019: Amendment # 2019-2182h (NT): AA VV 06/06/2019 HJ 18 P. 27


June 5, 2019: Committee Report: Ought to Pass with Amendment # 2019-2182h (NT) for 06/05/2019 (Vote 19-0; RC) HC 27 P. 22


: Committee Report: Ought to Pass with Amendment # 2019-2182h (Vote 19-0; RC)


May 28, 2019: Executive Session: 05/28/2019 10:00 am LOB 202


May 28, 2019: Executive Session: 05/28/2019 10:00 am LOB 202


May 22, 2019: Full Committee Work Session: 05/22/2019 10:00 am LOB 202


May 21, 2019: Full Committee Work Session: 05/21/2019 10:00 am LOB 202


May 2, 2019: Full Committee Work Session: 05/02/2019 10:00 am LOB 202


April 24, 2019: Full Committee Work Session: 04/24/2019 01:00 pm LOB 202


April 10, 2019: Full Committee Work Session: 04/10/2019 02:00 pm LOB 202


April 9, 2019: Public Hearing: 04/09/2019 01:30 pm LOB 202


March 20, 2019: Introduced 03/20/2019 and referred to Ways and Means HJ 11 P. 70


March 7, 2019: Ought to Pass with Amendment 2019-0624s, MA, VV; OT3rdg; 03/07/2019; SJ 7


March 7, 2019: Committee Amendment # 2019-0624s, AA, VV; 03/07/2019; SJ 7


March 7, 2019: Committee Report: Ought to Pass with Amendment # 2019-0624s, 03/07/2019; SC 12


Feb. 20, 2019: Hearing: 02/20/2019, Room 100, SH, 10:00 am; SC 11


Jan. 3, 2019: Introduced 01/03/2019 and Referred to Ways and Means; SJ 4