HB 1484-FN-A-LOCAL - AS INTRODUCED
2000 SESSION
09/10
HOUSE BILL 1484-FN-A-LOCAL
AN ACT establishing a 5 percent tax on gambling winnings as a source of funding public education.
SPONSORS: Rep. Clemons, Hills 31; Rep. Franks, Hills 26, Rep. D. Cote, Hills 29; Rep. Dawe, Hills 33; Sen. Trombly, Dist 7
This bill establishes a 5 percent tax on gambling winnings to be collected by the payor of such winnings. Revenues from the tax are to be deposited in the education trust fund.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
00-2016
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand
AN ACT establishing a 5 percent tax on gambling winnings as a source of funding public education.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Special Fund; Education Trust Fund; Gambling Tax Revenues Added. Amend RSA 6:12, I (www) to read as follows:
(www) Money received under RSA 77-A, RSA 77-E, RSA 78, RSA 78-A, RSA 78-B, RSA 83-F, RSA 198:46, RSA 284:21-w, and from the sweepstakes fund, which shall be credited to the education trust fund under RSA 198:39.
2 Education Trust Fund; Gambling Tax Revenues Added. Amend RSA 198:39, I (h) to read as follows:
(h) All moneys due the fund in accordance with RSA 284:21-j, relative to sweepstakes, and RSA 284:21-w, relative to the gambling tax.
3 New Subdivision; Gambling Tax to Fund Education. Amend RSA 284 by inserting after section 21-v the following new subdivision:
Gambling Tax to Fund Education
284:21-w Tax Imposed on Gambling Winnings to Fund Education; Rulemaking.
I. For purposes of this subdivision, "gambling winnings" means any money distributions to winners of bingo and lucky 7 games, sweepstakes, and pari-mutuel activities in the state of New Hampshire. It shall not include winnings of a free ticket.
II.(a) A supplemental tax shall be imposed at the rate of 5 percent upon all gambling winnings, except that the first $100 of such winnings to a single individual from a single game, race, or ticket purchase shall be exempt from taxation under this subdivision, for the purposes of providing a source of funding for the education trust fund established in RSA 198:39.
(b) Each payor shall keep books and records in a form acceptable to the department of revenue administration showing the amount of all taxes due. The payor shall withhold such amount from the distribution to the winner. The payor shall pay the amount withheld over to the state as provided in subparagraph (c).
(c) Within 10 days after the end of each month, an amount equal to the taxes withheld shall be remitted to the department of revenue administration to be deposited by the state treasurer in the education trust fund established in RSA 198:39.
III. The commissioner of the department of revenue administration shall adopt rules, under RSA 541-A, relative to carrying out the purposes of this subdivision.
4 Repeal. RSA 284:21-r, relative to the tax exempt status of sweepstakes winnings, is repealed.
5 Effective Date. This act shall take effect July 1, 2000.
LBAO
00-2016
12/15/99
HB 1484-FN-A-LOCAL - FISCAL NOTE
AN ACT establishing a 5 percent tax on gambling winnings as a source of funding public education.
FISCAL IMPACT:
The Sweepstakes Commission indicates that this bill will decrease state restricted revenue by $7.96 million in FY 2001 and each year thereafter. The Pari-Mutuel Commission indicates that this bill will increase state restricted revenue by $830,000 in FY 2001 and each year thereafter and increase state expenditures by $27,000 in FY 2001, by $28,000 in FY 2002, by $29,000 in FY 2003, and by $30,000 in FY 2004. The Department of Revenue Administration indicates that this bill will increase state expenditures by $10,000 in FY 2001. There is no fiscal impact on county and local revenues or expenditures.
METHODOLOGY:
The Sweepstakes Commission calculated that the $7.96 million decrease in state restricted revenue would be the net of decreased sales offset by the 5% tax on gambling winnings. The Commission assumed that net sales would decrease by $10.2 million, or about 20% of sales based on the experience of other states that have implemented a similar tax. Offsetting this sales reduction, the Commission estimated that the 5% tax on gambling winnings would generate $2.24 million from the Bingo, Lucky 7, Instant, and Powerball games. The Commission assumed that all Tri-State games would not be taxed because of the state tax exemption stated in RSA 287-F:17.
The Pari-Mutuel Commission calculated the $830,000 increase in state restricted revenue by computing the tax assuming that 10% of the estimated winnings exceeded the $100 tax threshold stated in the bill ($16.6 million x 5%). The Commission stated that state expenditures would increase in FY 2001 by $27,000 for administrative costs, including an Auditor at labor grade 12. The Commission expected costs to increase by $1,000 each year thereafter to reflect step and benefit increases.
The Department of Revenue Administration stated that $10,000 would be needed to upgrade the Department's computer systems to accommodate this tax change.