Text to be removed highlighted in red.
1 New Paragraph; Revenue Stabilization Reserve Account; Revenue Shortfalls. Amend RSA 9:13-e by inserting after paragraph III the following new paragraph:
III-a. In the event of unexpectedly large negative effects on state revenues, the following procedures shall be applied:
(a) In addition to the provisions in paragraph III, if by the end of the month of August, October, December, or May in any fiscal year, the total revenues deposited to the combined general fund and education trust fund during the prior 6 months fall below 95 percent of the official revenue plan for the fiscal year prepared by the department of administrative services, the comptroller and the legislative budget assistant shall appear before the fiscal committee of the general court and testify whether, in their opinion, if continued, this revenue reduction would make the total required expenditures from the combined general fund and education trust fund during the subsequent 3 months impossible without transfers from the revenue stabilization reserve account. The fiscal committee shall determine whether such a transfer is necessary, and the amount needed, and instruct the comptroller to transfer the sum approved to the general fund surplus account in appropriate monthly increments. This procedure shall be repeated until the revenue stabilization reserve account would have a zero balance or the fiscal committee determines that planned revenues and required expenditures have come into balance. In the first year of the biennial budget, the procedure will not take place in August.
(b) If, pursuant to subparagraph (a), the fiscal committee determines that the revenue stabilization reserve account will have a zero balance in less than 6 months and that spending reductions and expected future revenues cannot prevent it, the fiscal committee of the general court shall certify to the commissioner of the department of revenue administration, the secretary of state, and the office of legislative services of the effective amendment of the business profits tax rate to 8.5 percent and the business enterprise tax rate to 0.50 percent to be applicable in the first quarterly payment due 90 days or more after such certification.
2 Revenue Stabilization Reserve Account. Amend RSA 9:13-e, IV to read as follows:
IV. No available balance in the revenue stabilization reserve account shall be utilized for any purpose other than those authorized by paragraphs II and, III, and III-a without the specific approval of 2/3 of each house of the general court and the governor.
3 Contingent Amendment; Business Profits Tax Rate. 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 8.5 percent upon the taxable business profits of every business organization.
4 Contingent Amendment. Business Enterprise Tax Rate. 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 .50 percent upon the taxable enterprise value tax base of every business enterprise.
5 Applicability of Contingent Amendments. Sections 3 and 4 of this act, setting the rates of the business profits tax and the business enterprise tax, shall take effect on the day certified by the fiscal committee of the general court as provided in RSA 9:13-e, III-a.
6 Effective Date.
I. Sections 3 and 4 of this act shall take effect as provided in section 5 of this act.
II. The remainder of this act shall take effect July 1, 2019.
Text to be added highlighted in green.
1 New Paragraph; Revenue Stabilization Reserve Account; Revenue Shortfalls. Amend RSA 9:13-e by inserting after paragraph III the following new paragraph:
III-a. In the event of unexpectedly large negative effects on state revenues, the following procedures shall be applied:
(a) In addition to the provisions in paragraph III, if by the end of the month of August, October, December, or May in any fiscal year, the total revenues deposited to the combined general fund and education trust fund during the prior 6 months fall below 95 percent of the official revenue plan for the fiscal year prepared by the department of administrative services, the comptroller and the legislative budget assistant shall appear before the fiscal committee of the general court and testify whether, in their opinion, if continued, this revenue reduction would make the total required expenditures from the combined general fund and education trust fund during the subsequent 3 months impossible without transfers from the revenue stabilization reserve account. The fiscal committee shall determine whether such a transfer is necessary, and the amount needed, and instruct the comptroller to transfer the sum approved to the general fund surplus account in appropriate monthly increments. This procedure shall be repeated until the revenue stabilization reserve account would have a zero balance or the fiscal committee determines that planned revenues and required expenditures have come into balance. In the first year of the biennial budget, the procedure will not take place in August.
(b) If, pursuant to subparagraph (a), the fiscal committee determines that the revenue stabilization reserve account will have a zero balance in less than 6 months and that spending reductions and expected future revenues cannot prevent it, the fiscal committee of the general court shall certify to the commissioner of the department of revenue administration, the secretary of state, and the office of legislative services of the effective amendment of the business profits tax rate to 8.5 percent and the business enterprise tax rate to 0.50 percent to be applicable in the first quarterly payment due 90 days or more after such certification.
2 Revenue Stabilization Reserve Account. Amend RSA 9:13-e, IV to read as follows:
IV. No available balance in the revenue stabilization reserve account shall be utilized for any purpose other than those authorized by paragraphs II , III, and III-a without the specific approval of 2/3 of each house of the general court and the governor.
3 Contingent Amendment; Business Profits Tax Rate. 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 8.5 percent upon the taxable business profits of every business organization.
4 Contingent Amendment. Business Enterprise Tax Rate. 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 .50 percent upon the taxable enterprise value tax base of every business enterprise.
5 Applicability of Contingent Amendments. Sections 3 and 4 of this act, setting the rates of the business profits tax and the business enterprise tax, shall take effect on the day certified by the fiscal committee of the general court as provided in RSA 9:13-e, III-a.
6 Effective Date.
I. Sections 3 and 4 of this act shall take effect as provided in section 5 of this act.
II. The remainder of this act shall take effect July 1, 2019.