HB 1490-LOCAL - AS INTRODUCED
2000 SESSION
10/01
HOUSE BILL 1490-LOCAL
This bill allows a municipality to adopt a sales tax by vote of the municipality and to determine the rate percent of the tax, subject to approval by the department of revenue administration.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
00-2057
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand
AN ACT relative to enabling municipalities to enact a sales tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Duties of Commissioner of Revenue Administration. Amend RSA 21-J:3 by inserting after paragraph VIII the following new paragraph:
VIII-a. Review any sales tax proposed under the provisions of RSA 77-F by a municipality for conformance with applicable state or federal law and provisions of the constitutions of New Hampshire and the United States. The commissioner shall also provide assistance to any municipality, upon request of the appropriate official, in the administration, collection, and enforcement of the method of sales taxation employed.
2 Department of Revenue Administration; Assistance to Municipalities. Amend RSA 21-J:10 to read as follows:
21-J:10 Assistance to Municipalities. The commissioner may assist any municipality in the administration of any sales tax adopted under RSA 77-F or in the appraisal and valuation of the taxable property therein upon written request by the proper municipal officers or when the municipality shall so vote. The department shall recover the full costs of providing such assistance or such appraisal and valuation services, including the direct and indirect costs of [appraisal] staff and indirect administrative and support costs.
3 New Chapter; Local Option Sales Tax. Amend RSA by inserting after chapter 77-E the following new chapter:
CHAPTER 77-F
LOCAL OPTION SALES TAX
77-F:1 Local Option Sales Tax; Procedure for Adoption. The governing body of each municipality in the state may assess a tax, at a rate adopted by the municipality, upon the receipts from the sale of tangible personal property purchased at retail in the municipality, by a majority vote of those present and voting for the purpose, in order to provide general revenues for the municipality.
I. Any municipality may adopt or change the method of taxation, or adopt or change the rate of taxation, in the following manner:
(a) In a town with a town meeting legislative body, the question shall be placed on the warrant of an annual town meeting under the procedures set out in RSA 39, and shall be voted upon by ballot. In any other municipality, the legislative body may consider and act upon the question in accordance with its normal procedures for passage of resolutions, ordinances, and other legislation. The legislative body of such municipality may vote to place the question on the official ballot for any regular municipal election, or, in the alternative, shall place the question on the official ballot for any regular municipal election upon submission to the legislative body of a petition signed by 5 percent of the registered voters.
(b) The governing body shall hold a public hearing on the question at least 15 days but not more than 30 days before the question is to be voted on. Notice of the hearing shall be posted in at least 2 public places in the municipality and published in a newspaper of general circulation at least 7 days before the hearing.
(c) The wording of the question shall be: "Shall we adopt the following sales tax in the town (city) of __________, for the purpose of raising revenues for the general fund of the town (city)." Following the question shall appear the complete text of the proposed sales tax.
II. If a majority of those present and voting on the question vote "Yes," the sales tax and the rate percent of the sales tax shall apply within the town or city on the April 1 next following the adoption.
III. Any such proposed sales tax shall have received a review and approval by the department of revenue administration submitted to the commissioner of revenue administration at least 90 days before any hearing under paragraph I.
4 Effective Date. This act shall take effect July 1, 2000.