Text to be removed highlighted in red.
1 Short Title. This bill may be known and cited as "The Repeal the Tariff Tax on Small Businesses Act."
2 Statement of Findings.
I. The commissioner of the department of business and economic affairs stated that Canadian tourism has declined by about 30 percent, attributing "difficulty and volatility between the Canadian government and the United States government" as a potential driver. A decrease in tourism has coincided with lower than projected meals and rooms tax revenue, meaning local property taxpayers will have to make up the difference.
II. According to the U.S. Census Bureau's Foreign Trade Bureau, exports to Canada are 42.6 percent lower compared to last year. Dramatically lower exports mean less revenue for small businesses.
III. Small businesses are the backbone of New Hampshire's economy. They make up 99 percent of New Hampshire businesses. It is the duty of the general court to support them, including helping them navigate federal policy that has decreased their revenue through a decline in tourism and trade. Previously, the Main Street Relief Fund provided stabilization to small businesses during a similar economic disruption.
3 New Subparagraph; The State and Its Government; State Treasurer; Application of Receipts. Amend RSA 6:12, I(b) by inserting after subparagraph (410) the following new subparagraph:
(411) Moneys deposited into the small business tariff stabilization fund established in RSA 12-O:23-b.
4 New Section; The State and Its Government; Department of Business and Economic Affairs; Small Business Tariff Stabilization Fund. Amend RSA 12-O by inserting after section 23-a the following new section:
12-O:23-b Small Business Tariff Stabilization Fund.
I. There is hereby established the small business tariff stabilization fund, which shall be kept separate and distinct from all other funds and shall be continually appropriated to the department of business and economic affairs. The fund shall be used to provide stabilization grants to small businesses.
II. Stabilization grants shall be distributed or expended by the department of business and economic affairs for the following purposes:
(a) Addressing economic hardships small businesses face, including supply chain disruptions and preserving small businesses with low capital reserves; and
(b) Supporting small businesses, as defined by the U.S. Small Business Administration, whose primary place of business is in New Hampshire and who are committed to preventing layoffs due to increased costs associated with tariffs.
III. The department may accept gifts, grants, donations or other moneys for the purposes of this section. Said moneys and any interest earned shall be deposited into the small business tariff stabilization fund and may be expended to accomplish the purposes of this section. The moneys in this fund shall be nonlapsing.
5 Department of Business and Economic Affairs; Appropriation. There is hereby appropriated to the department of business and economic affairs the sum of $2,500,000 for the fiscal year ending June 30, 2026, for the purpose of funding the small business tariff stabilization fund. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
6 Effective Date. This act shall take effect January 1, 2027.
Text to be added highlighted in green.
1 Short Title. This bill may be known and cited as "The Repeal the Tariff Tax on Small Businesses Act."
2 Statement of Findings.
I. The commissioner of the department of business and economic affairs stated that Canadian tourism has declined by about 30 percent, attributing "difficulty and volatility between the Canadian government and the United States government" as a potential driver. A decrease in tourism has coincided with lower than projected meals and rooms tax revenue, meaning local property taxpayers will have to make up the difference.
II. According to the U.S. Census Bureau's Foreign Trade Bureau, exports to Canada are 42.6 percent lower compared to last year. Dramatically lower exports mean less revenue for small businesses.
III. Small businesses are the backbone of New Hampshire's economy. They make up 99 percent of New Hampshire businesses. It is the duty of the general court to support them, including helping them navigate federal policy that has decreased their revenue through a decline in tourism and trade. Previously, the Main Street Relief Fund provided stabilization to small businesses during a similar economic disruption.
3 New Subparagraph; The State and Its Government; State Treasurer; Application of Receipts. Amend RSA 6:12, I(b) by inserting after subparagraph (410) the following new subparagraph:
(411) Moneys deposited into the small business tariff stabilization fund established in RSA 12-O:23-b.
4 New Section; The State and Its Government; Department of Business and Economic Affairs; Small Business Tariff Stabilization Fund. Amend RSA 12-O by inserting after section 23-a the following new section:
12-O:23-b Small Business Tariff Stabilization Fund.
I. There is hereby established the small business tariff stabilization fund, which shall be kept separate and distinct from all other funds and shall be continually appropriated to the department of business and economic affairs. The fund shall be used to provide stabilization grants to small businesses.
II. Stabilization grants shall be distributed or expended by the department of business and economic affairs for the following purposes:
(a) Addressing economic hardships small businesses face, including supply chain disruptions and preserving small businesses with low capital reserves; and
(b) Supporting small businesses, as defined by the U.S. Small Business Administration, whose primary place of business is in New Hampshire and who are committed to preventing layoffs due to increased costs associated with tariffs.
III. The department may accept gifts, grants, donations or other moneys for the purposes of this section. Said moneys and any interest earned shall be deposited into the small business tariff stabilization fund and may be expended to accomplish the purposes of this section. The moneys in this fund shall be nonlapsing.
5 Department of Business and Economic Affairs; Appropriation. There is hereby appropriated to the department of business and economic affairs the sum of $2,500,000 for the fiscal year ending June 30, 2026, for the purpose of funding the small business tariff stabilization fund. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
6 Effective Date. This act shall take effect January 1, 2027.