HB 37-FN-A – AS INTRODUCED
2011 SESSION
11-0074
09/01
HOUSE BILL 37-FN-A
AN ACT reestablishing the initial monthly gross charge exemption to the communications services tax.
SPONSORS: Rep. Vaillancourt, Hills 15
COMMITTEE: Ways and Means
ANALYSIS
This bill reestablishes the exemption to the communications services tax for the first $12 of the monthly gross charge for a residential customer’s telephone exchange access and exchange service.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0074
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT reestablishing the initial monthly gross charge exemption to the communications services tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Communications Services Tax; Exemption. Amend RSA 82-A by inserting after section 5 the following new section:
82-A:5-a Exemption. The first $12 of the monthly gross charge for a residential customer’s telephone exchange access and exchange service shall be exempt from the tax imposed by RSA 82-A:3. If billing is other than on a monthly basis, the exemption allowed shall be prorated to the ratio that the billing period bears to a period of 30 days.
2 Effective Date. This act shall take effect July 1, 2011.
LBAO
11-0074
01/14/11
Revised
HB 37 FISCAL NOTE
AN ACT reestablishing the initial monthly gross charge exemption to the communications services tax.
FISCAL IMPACT:
The Department of Revenue Administration states this bill will decrease state revenues by $2,282,000 in FY 2012, $2,030,000 in FY 2013, $1,806,000 in FY 2014, and $1,607,000 in FY 2015. There will be no fiscal impact on state, county, and local expenditures or county and local revenues.
METHODOLOGY:
This bill reestablishes the exemption to the communications services tax for the first $12 of the monthly gross charge for a residential customer’s telephone exchange access and exchange service. The Department of Revenue Administration states the proposed legislation could be administered without any additional cost.
The Department’s revenue estimate is based on an extrapolation of the reduction in the taxable base derived from the number of telephone exchange access and exchange service lines or access lines in service (ALS) anticipated being in service through fiscal year 2015. Based on data available on the Public Utilities Commission (PUC) website, the Department anticipates an average monthly decline in the number of ALS of .97%. This results in an average of 226,380 ALS per month for fiscal year 2012, 201,390 ALS in fiscal year 2013, 179,160 ALS in fiscal year 2014, and 159,383 ALS in fiscal year 2015. The Department then multiplied the average number of ALS per month by $144 ($12 per month x 12 months) to determine the estimated reduction in the tax base. The estimated reduction in the tax base was then multiplied by the current tax rate of 7% established in RSA 82-A to determine the estimated reduction in state revenue. A summary of the calculations is as follows:
