HB 469-FN-A – AS INTRODUCED
2011 SESSION
09/10
HOUSE BILL 469-FN-A
AN ACT establishing a credit against the business enterprise tax for operators collecting meals and rooms taxes.
SPONSORS: Rep. Ahlgren, Carr 4
This bill establishes a credit against the business enterprise tax for operators collecting meals and rooms taxes.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0405
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT establishing a credit against the business enterprise tax for operators collecting meals and rooms taxes.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Business Enterprise Tax Credit for Operators Collecting Meals and Rooms Taxes. Amend RSA 77-E by inserting after section 3-c the following new section:
77-E:3-d Credit for Operators Collecting Meals and Rooms Taxes. There shall be a credit against the tax paid under this chapter in the amount of 5 percent of meals and rooms taxes collected by operators licensed under RSA 78-A.
2 Applicability. This act shall take effect for taxable periods ending on or after June 30, 2013.
3 Effective Date. This act shall take effect July 1, 2013.
LBAO
11-0405
01/14/11
469-FN-A - FISCAL NOTE
AN ACT establishing a credit against the business enterprise tax for operators collecting meals and rooms taxes.
FISCAL IMPACT:
The Department of Revenue Administration states this bill will decrease state revenue by an indeterminable amount in FY 2014 and each 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 would establish a credit against the Business Enterprise Tax (BET) of 5% of meals and rooms (M&R) taxes collected by operators. The bill would take effect for taxable periods on or after June 30, 2013 which would impact FY 2014 revenues. For the purposes of this fiscal note, the Department uses states M&R taxes received in FY 2010 of $235,317,841 (which is the amount before deducting commissions). The Department states BET liabilities could increase due to the economic recovery and therefore revenue losses could be greater. The Department has estimated a range of possible losses based upon their ability to compare some, but not all, BET returns to their M&R operator’s filings. The Department states the maximum range of possible loss in BET revenue for FY 2015 due to the allowance of a credit of 5% of M&R taxes collected against their BET liabilities would be 5% of $235,317,841, for an estimated credit of $11,765,892. For FY 2014, the credit is assumed to be half or $5,882,946 as the credit does not become effective until July 1, 2013. The Department states the minimum range of possible loss in BET revenue for FY 2015 uses FY 2010 data based upon all 2,569 operator records that could be matched to payers of the BET to date for Tax Year 2009. These operators reported $118,330,009 in net M&R taxes collected, and they paid $13,789,395 in BET. Thus it is assumed they would have had at least $5,916,500 in credit to offset their BET liability (5% X $118,330,009). For FY 2014, the credit is assumed to be $2,958,250 as the credit does not become effective until July 1, 2013. The exact fiscal impact cannot be determined at this time.