SB 474 - AS INTRODUCED
2020 SESSION
20-2771
10/05
SENATE BILL 474
AN ACT relative to the income tax on interest and dividends.
SPONSORS: Sen. Dietsch, Dist 9
COMMITTEE: Ways and Means
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ANALYSIS
This bill provides that the taxation of interest and dividends under RSA 77 is known as the income tax on interest and dividends.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
20-2771
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty
AN ACT relative to the income tax on interest and dividends.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Purpose. The public perception exists that the state of New Hampshire has no income tax. However, the state actually does tax interest and dividends as income under RSA 77. In order to increase transparency to taxpayers and to people considering moving to the state, the name of the state interest and dividends tax is changed to the income tax on interest and dividends.
2 Chapter Title; Income Tax on Interest and Dividends. Amend the chapter title of RSA 77 to read as follows:
CHAPTER 77
[TAXATION OF INCOMES]
INCOME TAX ON INTEREST AND DIVIDENDS
3 Reference Changed; Business Profits Tax; Committee to Study Safe Harbors. Amend RSA 77-A:4-c, II(c) to read as follows:
(c) Study the taxation of distributions received from investment organizations under the [Interest and Dividends Tax] income tax on interest and dividends.
4 Reference Changed; Education Tax Credit. Amend RSA 77-G:3 to read as follows:
77-G:3 Contributions to Scholarship Organizations. For each contribution made to a scholarship organization, a business organization, business enterprise, or individual may claim a credit equal to 85 percent of t he contribution against the business profits tax due pursuant to RSA 77-A, against the business enterprise tax due pursuant to RSA 77-E, against the income tax on interest and dividends under RSA 77, or apportioned against each provided the total credit granted shall not exceed the maximum education tax credit allowed. Credits provided under this chapter shall not be deemed taxes paid for the purposes of RSA 77-A:5, X. The department of revenue administration shall not grant the credit without a scholarship receipt. No business organization, business enterprise, or individual shall direct, assign, or restrict any contribution to a scholarship organization for the use of a particular student or nonpublic school. No business organization, business enterprise, or individual shall receive more than 10 percent of the aggregate amount of tax credits permitted in RSA 77-G:4.
5 References Changed; Education Tax Credit; Scholarship Organizations. Amend RSA 77-G:5, I(i)(2) to read as follows:
(2) Not knowingly award a scholarship to any lineal descendant or equivalent step-person of any proprietor, partner, or member of any business organization, business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the business profits tax, business enterprise tax, or income tax on interest and dividends, nor any lineal descendant or equivalent step-person of any officer, director, or owner of more than a 5 percent interest in any business organization, business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the business profits tax, business enterprise tax, or income tax on interest and dividends, nor any employee who is among the highest-paid 20 percent of paid employees in any business organization, business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the business profits tax, business enterprise tax, or income tax on interest and dividends.
6 Reference Changed; Return of Revenue to Towns. Amend RSA 31-A:4, II to read as follows:
II. Its 1982 distribution under the income tax on interest and dividends [tax].
7 Reference Changed; College Tuition Savings Plan. Amend RSA 195-H:10 to read as follows:
195-H:10 Funds Exempt From the Income Tax on Interest and Dividends [Tax]. Income and distributions from any qualified tuition program as defined in the Internal Revenue Code of 1986, as amended, shall be exempt from the New Hampshire income tax on interest and dividends [tax] pursuant to RSA 77:4-e, provided that distributions from the plan which are subject to federal income tax shall be subject to the income tax on interest and dividends [tax] pursuant to RSA 77 on the accrued income portion of the savings plan distribution.
8 Reference Changed; ABLE Savings Accounts. Amend RSA 195-K:4 to read as follows:
195-K:4 Funds Exempt From the Income Tax on Interest and Dividends [Tax]. Income and distributions from any qualified ABLE program as defined in the Internal Revenue Code of 1986, as amended, shall be exempt from the income tax on interest and dividends [tax] pursuant to RSA 77:4-h, provided that distributions from the plan which are subject to federal income tax shall be subject to the income tax on interest and dividends [tax] pursuant to RSA 77 on the accrued income portion of the savings plan distribution.
9 References Changed; Motor Vehicle Drivers' Licenses. Amend RSA 261:52-a to read as follows:
261:52-a Notice That Income Tax on Interest and Dividends [Tax] May be Due. Blanks prepared by the director for application for an original driver's license under RSA 263:5 shall be accompanied by a notification to the applicant that as a New Hampshire resident she or he may be liable for tax payments under RSA 77, the income tax on interest and dividends [tax]. The notice shall be prepared by the commissioner of revenue administration.
10 Department of Revenue Administration; Implementation of Name Change. Changes to forms and other documents and information concerning name of the income tax on interest and dividends under RSA 77 as administered by the department of revenue administration shall be made in electronic and print documents during the routine maintenance and update cycles so that no additional administrative or printing cost is incurred. However, any documents changed for any reason after the effective date of this act shall be updated with the correct title for the income tax interest and dividends.
11 Effective Date. This act shall take effect 60 days after its passage.
| Date | Body | Type |
|---|---|---|
| Jan. 15, 2020 | Senate | Hearing |
| Feb. 13, 2020 | Senate | Floor Vote |
Feb. 13, 2020: Inexpedient to Legislate, MA, VV === BILL KILLED ===; 02/13/2020; SJ 4
Feb. 13, 2020: Committee Report: Inexpedient to Legislate, 02/13/2020; SC 6
Jan. 15, 2020: Hearing: 01/15/2020, Room 100, SH, 09:00 am; SC 2
Jan. 8, 2020: To Be Introduced 01/08/2020 and Referred to Ways and Means; SJ 1