SB261 (2023) Detail

Relative to the interest and dividends tax rate and threshold.


SB 261-FN - AS INTRODUCED

 

 

2023 SESSION

23-0997

07/05

 

SENATE BILL 261-FN

 

AN ACT relative to the interest and dividends tax rate and threshold.

 

SPONSORS: Sen. Soucy, Dist 18; Sen. Rosenwald, Dist 13; Sen. Whitley, Dist 15; Sen. D'Allesandro, Dist 20; Sen. Fenton, Dist 10; Sen. Perkins Kwoka, Dist 21; Sen. Watters, Dist 4; Sen. Chandley, Dist 11; Sen. Prentiss, Dist 5; Rep. Telerski, Hills. 11; Rep. Wilhelm, Hills. 40

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill:

 

I.  Removes the repeal of the interest and dividends tax rate that was to take place on January 1, 2027.

 

II.  Removes the interest and dividends tax rate reductions that were to occur after December 31, 2024.

 

III.  Increases the taxable minimum of gross income from 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

23-0997

07/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Three

 

AN ACT relative to the interest and dividends tax rate and threshold.

 

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

 

1  Repeal.  2021, 91:89-100 relative to the phase out and repeal of rate of taxation of incomes, is repealed.

2  Taxation of Incomes; Rate  RSA 77:1 is repealed and reenacted to read as follows:

77:1  Rate.

I.  The annual tax upon incomes shall be levied at the rate of 5 percent for all taxable periods ending on or before December 31, 2023.

II.  The annual tax upon incomes shall be levied at the rate of 4 percent for all taxable periods ending after December 31, 2023.

3  Taxation of Incomes; Who Taxable.  Amend RSA 77:3, I to read as follows:

I.  Taxable income is that income received from interest and dividends during the tax year prior to the assessment date by:

(a)  Individuals who are inhabitants or residents of this state for any part of the taxable year whose gross interest and dividend income from all sources, including income from a qualified investment company pursuant to RSA 77:4, V, exceeds [$2,400] $50,000 during that taxable period.

(b)  Partnerships, limited liability companies, and associations, the beneficial interest in which is not represented by transferable shares, whose gross interest and dividend income from all sources exceeds [$2,400] $50,000 during the taxable year, but not including a qualified investment company as defined in RSA 77-A:1, XXI, or a trust comprising a part of an employee benefit plan, as defined in the Employee Retirement Income Security Act of 1974, section 3.

(c)  Executors deriving their appointment from a court of this state whose gross interest and dividend income from all sources exceeds [$2,400] $50,000 during the taxable year.

4  Effective Date.  This act shall take effect upon its passage.

 

LBA

23-0997

1/17/23

 

SB 261-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the interest and dividends tax rate and threshold.

 

FISCAL IMPACT:

Due to time constraints, the Office of Legislative Budget Assistant is unable to provide a fiscal note for this bill, as introduced, at this time.  When completed, the fiscal note will be forwarded to the Senate Clerk's Office.

 

AGENCIES CONTACTED:

Department of Revenue Administration

 

Links

Action Dates

Date Body Type
Feb. 1, 2023 Senate Hearing

Bill Text Revisions

SB261 Revision: 37722 Date: Jan. 24, 2023, 11:39 a.m.

Docket


Jan. 24, 2023: Hearing: 02/01/2023, Room 100, SH, 10:15 am; SC 8


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