HB 157-FN-A – AS INTRODUCED
2011 SESSION
09/10
HOUSE BILL 157-FN-A
AN ACT repealing the tax on gambling winnings.
SPONSORS: Rep. Hatch, Coos 3; Rep. Almy, Graf 11; Sen. D'Allesandro, Dist 20
This bill repeals the tax on gambling winnings.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0261
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT repealing the tax on gambling winnings.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Repeal. The following are repealed:
I. RSA 21-J:13, XIII, relative to rulemaking for collection of taxes on gambling winnings.
II. RSA 77:38 – 77:50, relative to taxation of gambling winnings.
2 New Section; Gambling Winnings Tax Exempt. Amend RSA 284 by inserting after section 21-r the following new section:
284:21-rr Winnings Tax Exempt. Notwithstanding any other provisions of law to the contrary, a recipient of any money or prize awarded pursuant to the provisions of RSA 284:21-i shall be exempt from any tax imposed thereon by the state of New Hampshire.
3 Effective Date. This act shall take effect July 1, 2011.
LBAO
11-0261
12/20/10
HB 157-FN-A - FISCAL NOTE
AN ACT repealing the tax on gambling winnings.
FISCAL IMPACT:
The Department of Revenue Administration states this bill will decrease State general fund revenue by $3,400,000 in FY 2012 and each year thereafter. The Lottery Commission states this bill will decrease State general fund revenue by $2,600,000 in FY 2012 and by $2,800,000 in FY 2013 and each year thereafter.
This bill will have no fiscal impact on state, county, or local expenditures or county and local revenue.
METHODOLOGY:
The Department of Revenue Administration states this bill repeals the tax on gambling winnings effective July 1, 2011. The Department states during FY 2011, the tax on gambling winnings was projected to generate $3,400,000 in revenue; therefore, this revenue would be eliminated during FY 2012 and each year thereafter. The Department further states it can administer this bill without any additional costs.
The Lottery Commission states this bill would exempt all lottery winnings from the gambling tax. Based on projected lottery sales for FYs 2012 and 2013, the Lottery Commission estimates tax revenue to be $2,600,000 for FY 2013 and $2,800,000 for FY 2013. The Lottery Commission also states it believes repealing the tax would have a positive effect on lottery sales.
The Racing and Charitable Gaming Commission (RCGC) states it is required to pay claims on money received from race tracks for unredeemed pari-mutuel pool tickets, which are subject to tax withholdings for net winnings exceeding $10. The RCGC estimates these payouts total less that $500 per year; therefore the fiscal impact to the State is negligible.