SB 305-FN - AS INTRODUCED
2024 SESSION
24-2876
12/10
SENATE BILL 305-FN
SPONSORS: Sen. Avard, Dist 12
COMMITTEE: Ways and Means
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ANALYSIS
This bill permits wholesalers of cigarettes to retain one cent of the tax collected for each package of cigarettes to which a tax stamp is affixed as compensation for affixing tax stamps and collecting and remitting tax revenue.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2876
12/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Tobacco Tax; Wholesaler Compensation Compensation for Collecting and Remitting Tax. Amend RSA 78 by inserting after section 11 the following new section:
78:11-a Compensation for Collecting and Remitting Tax. The commissioner shall permit wholesalers of cigarettes to retain one cent of the tax revenue collected for each package of cigarettes to which a tax stamp is affixed as compensation for affixing tax stamps and collecting and remitting tax revenue.
2 Effective Date. This act shall take effect July 1, 2024.
24-2876
12/4/23
SB 305-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | Indeterminable Decrease | Indeterminable Decrease | Indeterminable Decrease | ||
Revenue Fund(s) | General Fund and Education Trust Fund
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Expenditures | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None
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Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None
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• Does this bill provide sufficient funding to cover estimated expenditures? [X] See Below • Does this bill authorize new positions to implement this bill? [X] No | ||||||
METHODOLOGY:
This bill allows wholesalers of cigarettes to retain one cent of the tax revenue collected for each package of cigarettes to which a stamp is affixed as compensation for affixing the stamp and collecting and remitting tax revenue to the Department of Revenue Administration. The Department assumes the changes contained in this bill will not apply to stamps purchased prior to the effective date of July 1, 2024, even if the stamps are affixed to packages sold at retail on or after July 1, 2024.
The Department is not able to determine the fiscal impact as the bill does not provide guidance as to how the Department is to administer the one cent retention of the tax revenue collected for each package of cigarettes sold with an affixed tax stamp. Additionally, the Department is not made aware of which stamps have been affixed to packages of cigarettes until the wholesaler files the quarterly "Resident Wholesaler Cigarette Tax Report" or "Non-Resident Wholesaler Cigarette Tax Report". The Department anticipates this bill will decrease General Fund and Education Trust Fund revenue by an indeterminable amount in FY 2025 and each year thereafter.
The Department would need to update all necessary tax return forms and electronic management systems to reflect the changes contained in this bill; however, it is not anticipated this will result in any additional administrative costs that could not be absorbed in the Department's operating budget.
AGENCIES CONTACTED:
Department of Revenue Administration
| Date | Body | Type |
|---|---|---|
| Jan. 17, 2024 | Senate | Hearing |
| Jan. 17, 2024 | Senate | Hearing |
| Jan. 18, 2024 | Senate | Floor Vote |
Feb. 8, 2024: Pending Motion Ought to Pass; 02/08/2024; SJ 3
Feb. 8, 2024: Sen. Innis Moved Laid on Table, MA, VV; 02/08/2024; SJ 3
Jan. 17, 2024: Committee Report: Ought to Pass, 02/08/2024, Vote 3-2; SC 6
Jan. 8, 2024: Hearing: 01/17/2024, Room 100, SH, 09:30 am; SC 3
Jan. 9, 2024: Hearing: 01/17/2024, Room 100, SH, 09:30 am; SC 3
Dec. 6, 2023: To Be Introduced 01/03/2024 and Referred to Ways and Means; SJ 1