SB260 (2023) Detail

Relative to deductions under the business profits tax for compensation of members and owners.


SB 260-FN - AS AMENDED BY THE SENATE

 

02/22/2023   0559s

2023 SESSION

23-0983

07/04

 

SENATE BILL 260-FN

 

AN ACT relative to deductions under the business profits tax for compensation of members and owners.

 

SPONSORS: Sen. Lang, Dist 2; Rep. Mooney, Hills. 12

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill creates a deduction of fair, reasonable, and customary compensation for members and owners of businesses subject to the business profits tax.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

02/22/2023   0559s 23-0983

07/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Three

 

AN ACT relative to deductions under the business profits tax for compensation of members and owners.

 

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

 

1  New Paragraph; Business Profits Tax.  Amend RSA 77-A:4 by inserting after paragraph XIX the following new paragraph:

XX.  A deduction of the full amount of fair, reasonable, and customary compensation for members and owners of business organizations subject to taxation under RSA 77-A, to the extent such amounts are not already deducted in arriving at the business organization's gross business profits, as defined in RSA 77-A:1, III.

2  New Paragraph; Department of Revenue Administration; General Provisions; Rulemaking Authority.  Amend RSA 21-J:13 by inserting after paragraph XIV the following new paragraph:

XV.  The implementation of a deduction for fair, reasonable, and customary compensation of members and owners of businesses subject to the business profits tax established under RSA 77-A:4, XX.

3  Effective Date.  This act shall take effect July 1, 2023.

 

LBA

23-0983

Amended 3/1/23

 

SB 260-FN- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2023-0559s)

 

AN ACT relative to deductions under the business profits tax for compensation of members and owners.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2023

FY 2024

FY 2025

FY 2026

   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

 

 

 

 

 

METHODOLOGY:

This bill allows a Business Profits Tax (BPT) deduction for the full amount of fair, reasonable, and customary compensation for members and owners of business organizations that are subject to the Business Profits Tax (BPT).  The Department of Revenue Administration states this bill will result in a decrease in BPT owed, resulting in a decrease in General Fund and Education Trust Fund revenue.  The Department is not able to calculate the potential revenue decrease as it does not collect information on the compensation for members and owners of business organizations.

 

AGENCIES CONTACTED:

Department of Revenue Administration

 

Links

Action Dates

Date Body Type
Feb. 8, 2023 Senate Hearing
Feb. 23, 2023 Senate Floor Vote
March 23, 2023 Senate Floor Vote

Bill Text Revisions

SB260 Revision: 38050 Date: March 1, 2023, 1:21 p.m.
SB260 Revision: 37962 Date: Feb. 16, 2023, 12:38 p.m.
SB260 Revision: 37749 Date: Jan. 25, 2023, 3:30 p.m.

Docket


March 23, 2023: Ought to Pass: MA, VV; OT3rdg; 03/23/2023; SJ 11


March 16, 2023: Committee Report: Ought to Pass, 03/23/2023; SC 14


Feb. 22, 2023: Ought to Pass with Amendment 2023-0559s, MA, VV; Refer to Finance Rule 4-5; 02/22/2023; SJ 8


Feb. 22, 2023: Committee Amendment # 2023-0559s, AA, VV; 02/22/2023; SJ 8


Feb. 16, 2023: Committee Report: Ought to Pass with Amendment # 2023-0559s, 02/22/2023; SC 11


Jan. 31, 2023: Hearing: 02/08/2023, Room 100, SH, 09:15 am; SC 9


Jan. 24, 2023: Introduced 01/19/2023 and Referred to Ways and Means; SJ 5