Revision: June 10, 2021, 7:39 a.m.
SB 101-FN - AS AMENDED BY THE HOUSE
4Jun2021... 1367h
2021 SESSION
21-1047
10/04
SENATE BILL 101-FN
AN ACT increasing the minimum gross business income required for filing a business profits tax return.
SPONSORS: Sen. Soucy, Dist 18; Sen. D'Allesandro, Dist 20; Sen. Watters, Dist 4; Sen. Prentiss, Dist 5; Sen. Cavanaugh, Dist 16; Sen. Sherman, Dist 24; Sen. Bradley, Dist 3; Sen. Perkins Kwoka, Dist 21; Sen. Rosenwald, Dist 13; Rep. Loughman, Rock. 21; Rep. Almy, Graf. 13
COMMITTEE: Ways and Means
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AMENDED ANALYSIS
This bill increases the minimum gross business income required for filing a business profits tax return and biennially adjusts this threshold based on the Consumer Price Index.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
4Jun2021... 1367h 21-1047
10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
AN ACT increasing the minimum gross business income required for filing a business profits tax return.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Minimum Gross Business Income for Filing Business Profits Tax Return. Amend RSA 77-A:6, I and I-a to read as follows:
I. Every business organization having gross business income in excess of [$50,000] $92,000 as defined by RSA 77-A:1, VI, during the taxable period, shall on or before the fifteenth day of the third month in the case of organizations required to file a United States partnership tax return, and the fifteenth day of the fourth month in the case of all other business organizations, following expiration of its taxable period, make a return to the commissioner. For tax years beginning January 1, 2023, the commissioner shall biennially adjust this threshold amount rounding to the nearest $1,000 based on the 2-year (24-month) percentage change in the Consumer Price Index for All Urban Consumers, Northeast Region as published by the Bureau of Labor Statistics, United States Department of Labor using the amount published for the month of June in the year prior to the start of the tax year. The commissioner [of revenue administration] shall adopt rules, pursuant to RSA 541-A, relative to the form of such return and the data which it must contain for the correct computation of taxable business profits and gross business income attributable to this state and the tax assessed on it. All returns shall be signed by the taxpayer or by its authorized representative, subject to the pains and penalties of perjury.
I-a. Every business organization realizing a gain or loss on the sale or exchange of an interest in the business organization shall file a return for the taxable period, regardless of whether or not the business organization's gross business income is in excess of [$50,000 during the taxable period] the threshold amount determined under paragraph I.
2 Applicability. The provisions of this act shall apply for taxable periods ending on or after December 31, 2022.
3 Effective Date. This act shall take effect July 1, 2021.
21-1047
Amended 6/10/21
SB 101-FN- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENT #2021-1367h)
AN ACT increasing the minimum gross business income required for filing a business profits tax return.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | ||||
STATE: | FY 2021 | FY 2022 | FY 2023 | FY 2024 | |
Appropriation | $0 | $0 | $0 | $0 | |
Revenue | $0 | Indeterminable Decrease | Indeterminable Decrease | Indeterminable Decrease | |
Expenditures | $0 | $0 | $0 | $0 | |
Funding Source: | [ X ] General [ X ] Education [ ] Highway [ ] Other | ||||
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METHODOLOGY:
This bill increases the gross business income threshold for filing a Business Profits Tax (BPT) return from in excess of $50,000 to in excess of $92,000 for taxable periods ending on or after December 31, 2022. The bill also will adjust the filling threshold biennially based on the 2-year change in the Consumer Price Index.
The Department of Revenue Administration does not know how many current or possibly new taxpayers would have gross business incomes between $50,001 and $92,000 in subsequent years to determine the actual decrease in General Fund and Education Trust Fund revenue. The Department is able to provide the potential fiscal impact of this bill if it had been in effect for tax year 2018. The Department needed to rely on federal information since there is not a line on the BPT return where taxpayers report their gross business income. The Department compared the 2018 BPT returns to tax year 2018 federal data to determine taxpayers that reported gross receipts between $50,001 and $92,000. Of the 74,343 taxpayers that filed 2018 BPT returns, 7,204 reported gross receipts between $50,001 and $92,000 on their 2018 federal returns. Of the 7,204 taxpayers, 6,169 had no BPT liability. The remaining 1,035 taxpayers reported a tax liability of $2,535,582. Therefore, if this bill had been in effect for tax year 2018, the decrease in revenue would have been approximately $2,535,582.
Since this change would be applicable for taxable periods ending on or after December 31, 2022, any fiscal impact would begin occurring when calendar year taxpayers make estimated payments in April and June of FY 2022.
The Department would be able to administer the changes in this bill without additional expenditures.
AGENCIES CONTACTED:
Department of Revenue Administration