HB 1604-FN-A – AS INTRODUCED
2010 SESSION
09/04
HOUSE BILL 1604-FN-A
AN ACT establishing a credit against the interest and dividends tax for taxes paid to other states on certain distributions.
SPONSORS: Rep. Hinkle, Hills 19; Rep. Seidel, Hills 20; Rep. Sapareto, Rock 5
This bill establishes a credit against the interest and dividends tax for taxes paid to other states on distributions paid by out-of-state limited liability companies, “S” corporations, partnerships, estates, or trusts to New Hampshire residents.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10-2173
09/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT establishing a credit against the interest and dividends tax for taxes paid to other states on certain distributions.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Interest and Dividends Tax; Credit for Taxes Paid to Other States on Certain Distributions. Amend RSA 77 by inserting after section 4-f the following new section:
77:4-g Credit for Taxes Paid to Other States on Certain Distributions. There shall be a credit against taxes paid under RSA 77:4, III for a distribution taxable in another state which is paid to the New Hampshire taxpayer by an out-of state limited liability company, an “S” corporation, partnership, an estate, or a trust in the amount of 5 percent of the amount of the distribution.
2 Effective Date. This act shall take effect July 1, 2010.
LBAO
10-2173
12/10/09
HB 1604-FN-A - FISCAL NOTE
AN ACT establishing a credit against the interest and dividends tax for taxes paid to other states on certain distributions.
FISCAL IMPACT:
The Department of Revenue states this bill will decrease state general fund revenue by an indeterminable amount in FY 2011 and each fiscal year thereafter. This bill will have no fiscal impact on state, county and local expenditures or county and local revenue.
METHODOLOGY:
The Department of Revenue Administration states this bill establishes a credit against the interest and dividends tax for taxes paid to other states on distributions paid by out-of-state limited liability companies to New Hampshire residents. The Department states this bill reverses some of the changes made relative to limited liability companies (LLCs) under the Interest and Dividends tax law that became effective July 1, 2009 (Chapter 144, Laws of 2009), for taxable periods ending on or after December 31, 2009. The Chapter 144 fiscal impact related to the LLC tax change projected a $15 million per fiscal year increase in general fund revenue. The Department states the out-of-state distributions in this proposed bill represents a portion of the $15 million per fiscal year increase in general fund revenue projected, but the amount of that portion cannot be estimated.
The Department states that they can administer this bill within their existing budget.
The Department further indicates the effective date of this bill is July 1, 2010, but it is not clear for which taxable periods the tax change will apply.