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1 Business Profits Tax; Imposition of Tax; 2019. RSA 77-A:2 is repealed and reenacted to read as follows:
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.
2 Application Business Profits Tax Rate. Section 1 of this act shall apply to taxable periods ending on or after December 31, 2019.
3 Business Enterprise Tax; Imposition of Tax; 2019. RSA 77-E:2 is repealed and reenacted to read as follows:
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.
4 Application of Business Enterprise Rate. Section 3 of this act shall apply to taxable periods ending on or after December 31, 2019.
5 Suspension of Future Rate Changes; Business Profits Tax; Business Enterprise Tax. The following provisions of law are hereby suspended:
I. The provisions of 2017, 156:215 and 2017, 156:216, relating to changes to the rates of the business profits tax and business enterprise tax.
II. The provisions of 2017, 156:217, II, relating to the applicability of the rate changes in paragraph I.
III. The effective date provisions in 2017, 156:249, VIII, as amended by 2018,11:1, for the rate changes in paragraph I.
6 Repeal. 2017, 156:217, I, relative the applicability of the 2019 rate changes to the business profits tax and business enterprise tax, is repealed.
7 Revenue Sharing; Appropriation.
I. Notwithstanding the provisions of RSA 31-A to the contrary, for each year of the biennium ending June 30, 2021, the state treasurer shall distribute to the cities and towns each year the amount appropriated in paragraph III according to the formula for calculating the annual share of each city or town described in the introductory paragraph of RSA 31-A:4 and paid quarterly.
II. The amount of revenue sharing in each fiscal year of the biennium shall be the sum certified by the commissioner of the department of revenue administration by October 1 of that year as the total of:
(a) The estimated additional amount of revenue produced by the suspension of further rate reduction by the provisions of 2017, 156:213 in the rate of tax imposed by RSA 77-A:2, for each fiscal year, and shall certify such amounts to the state treasurer; and
(b) The estimated additional amount of revenue produced by the suspension of further rate reduction by the provisions of 2017, 156:214 in the rate of tax imposed by RSA 77-E:2, for each fiscal year, and shall certify such amounts to the state treasurer.
III. The sums certified in paragraph II are hereby appropriated to the state treasurer for the purpose of revenue sharing under paragraph I. The governor is authorized to draw a warrant for said sums out of any money in the treasury not otherwise appropriated.
8 Effective Date. This act shall take effect July 1, 2019.
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1 Business Profits Tax; Imposition of Tax; 2019. RSA 77-A:2 is repealed and reenacted to read as follows:
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.
2 Application Business Profits Tax Rate. Section 1 of this act shall apply to taxable periods ending on or after December 31, 2019.
3 Business Enterprise Tax; Imposition of Tax; 2019. RSA 77-E:2 is repealed and reenacted to read as follows:
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.
4 Application of Business Enterprise Rate. Section 3 of this act shall apply to taxable periods ending on or after December 31, 2019.
5 Suspension of Future Rate Changes; Business Profits Tax; Business Enterprise Tax. The following provisions of law are hereby suspended:
I. The provisions of 2017, 156:215 and 2017, 156:216, relating to changes to the rates of the business profits tax and business enterprise tax.
II. The provisions of 2017, 156:217, II, relating to the applicability of the rate changes in paragraph I.
III. The effective date provisions in 2017, 156:249, VIII, as amended by 2018,11:1, for the rate changes in paragraph I.
6 Repeal. 2017, 156:217, I, relative the applicability of the 2019 rate changes to the business profits tax and business enterprise tax, is repealed.
7 Revenue Sharing; Appropriation.
I. Notwithstanding the provisions of RSA 31-A to the contrary, for each year of the biennium ending June 30, 2021, the state treasurer shall distribute to the cities and towns each year the amount appropriated in paragraph III according to the formula for calculating the annual share of each city or town described in the introductory paragraph of RSA 31-A:4 and paid quarterly.
II. The amount of revenue sharing in each fiscal year of the biennium shall be the sum certified by the commissioner of the department of revenue administration by October 1 of that year as the total of:
(a) The estimated additional amount of revenue produced by the suspension of further rate reduction by the provisions of 2017, 156:213 in the rate of tax imposed by RSA 77-A:2, for each fiscal year, and shall certify such amounts to the state treasurer; and
(b) The estimated additional amount of revenue produced by the suspension of further rate reduction by the provisions of 2017, 156:214 in the rate of tax imposed by RSA 77-E:2, for each fiscal year, and shall certify such amounts to the state treasurer.
III. The sums certified in paragraph II are hereby appropriated to the state treasurer for the purpose of revenue sharing under paragraph I. The governor is authorized to draw a warrant for said sums out of any money in the treasury not otherwise appropriated.
8 Effective Date. This act shall take effect July 1, 2019.