HB 533-FN-A – AS INTRODUCED
2009 SESSION
09-0247
09/03
HOUSE BILL 533-FN-A
AN ACT reducing the rates of the business profits tax and business enterprise tax.
SPONSORS: Rep. Rowe, Hills 6; Rep. N. Elliott, Hills 19; Rep. Itse, Rock 9; Rep. Ulery, Hills 27; Rep. Mead, Hills 4
COMMITTEE: Ways and Means
ANALYSIS
This bill reduces the rates of the business profits tax and business enterprise 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-0247
09/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT reducing the rates of the business profits tax and business enterprise tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Business Profits Tax; Imposition of Tax. Amend RSA 77-A:2 to read as follows:
77-A:2 Imposition of Tax. A tax is imposed at the rate of [8.5] 7.65 percent upon the taxable business profits of every business organization.
2 Business Enterprise Tax; Imposition of Tax. Amend RSA 77-E:2 to read as follows:
77-E:2 Imposition of Tax. A tax is imposed at the rate of [3/4] 27/40 of one percent upon the taxable enterprise value tax base of every business enterprise.
3 Effective Date. This act shall take effect July 1, 2009.
LBAO
09-0247
01/20/09
HB 533-FN-A - FISCAL NOTE
AN ACT reducing the rates of the business profits tax and business enterprise tax.
FISCAL IMPACT:
The Department of Revenue Administration states this bill will reduce state education trust fund revenue by $61,384,600 in FY 2010 and by an indeterminable amount in each year thereafter. This bill will have no fiscal impact on county and local revenues or state, county, and local expenditures.
METHODOLOGY:
This bill reduces the rates of the business profits tax and the business enterprise tax. The Department of Revenue Administration states this bill lowers the business profits tax (BPT) from 8.5% to 7.65% and the business enterprise tax (BET) from 3/4 of one percent (.75%) to 27/40 of one percent (.675%). Based on budgeted FY 2009 BET revenue of $285,400,000 being produced by a BET tax rate of .0075%, the Department estimates the BET tax base to be $38,053,333,333. Assuming the same tax base for FY 2010, a BET tax rate of .675% would produce $256,860,000 decreasing state trust fund revenue by $28,540,000. Using the same methodology, the Department estimates BPT revenue to decrease by $38,860,000. However, the Department also notes that the legislation would reduce the amount of the BET credit available to offset BPT taxes by $6,015,400.
