HB 107-FN-A - AS INTRODUCED
1999 SESSION
HOUSE BILL 107-FN-A
AN ACT establishing a tax review and adjustment study commission and making an appropriation therefor.
This bill establishes a tax review and adjustment study commission. The commission shall study the impact of new taxes proposed as a result of the Claremont II decision and make recommendations for adjustments to or repeal of existing taxes which unfairly burden certain segments of the state's citizenry. The bill makes an appropriation to the commission for the purposes of the costs of its study.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
99-0648
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord One Thousand Nine Hundred and Ninety-Nine
AN ACT establishing a tax review and adjustment study commission and making an appropriation therefor.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Purpose. As new taxes are proposed to offset the local property tax for funding public education in accordance with the supreme court's Claremont II decision, it is important that a review of the tax structure and policy of the state of New Hampshire be completed to insure a fair, proportional, responsible, and uncomplicated tax structure. Therefore the general court hereby establishes a tax review and adjustment study commission to undertake a comprehensive review of all taxes currently imposed on the citizens of New Hampshire, to consider the effect of all new taxes proposed, and to recommend adjustments to or repeal of certain taxes which may unfairly burden certain segments of the citizenry.
2 Tax Review and Adjustment Study Commission Established. There is established a 21-member tax review and adjustment study commission.
3 Membership and Compensation.
I. The members of the committee shall be as follows:
(a) Five house members, no more than 3 of whom shall be from the same political party, appointed by the speaker of the house.
(b), Five senators, no more than 3 of whom shall be from the same political party, appointed by the senate president.
(c) Eleven public members, 5 of whom shall be appointed by the governor and council, 3 of whom shall be appointed by the speaker of the house, and 3 of whom shall be appointed by the senate president.
II. The public members of the commission shall represent a cross-section of the citizenry, including persons of different age groups, income levels, and jobs and professions.
III. Legislative members of the commission shall receive mileage at the legislative rate when attending to the duties of the commission.
4 Duties. The commission shall:
I. Review each state and local tax paid by citizens of New Hampshire, with regard to who pays each tax, its effect on certain segments of the population, its effects on the economy, jobs, family and community, and whether it duplicates other taxes.
II. Review each tax proposed in the 1999 and 2000 legislative session, under the same criteria as required by paragraph I for review of existing taxes.
III. Make recommendations on repealing or adjusting existing taxes. Specific consideration should be given to recommending the repeal of:
(a) The real estate property tax for school purposes.
(b) The interest and dividends tax, under RSA 77.
(c) The communications services tax, under RSA 82-A.
(d) The real estate transfer tax, under RSA 78-B.
(e) The franchise tax under RSA 83-C.
(f) The electricity consumption tax, under RSA 83-E.
(g) The legacies and successions tax under RSA 86, and related taxes imposed under RSA 87, 88, 88-A, and 89.
III. Review all state grants and revenue sharing programs to determine if any can be supported by the local property tax or substituted for the school tax portion if the state absorbs the responsibility for funding public education, grades K-12.
IV. Make recommendations for a complete list of taxes which establish a new tax policy for this state. This policy shall be revenue-neutral and based on adjustments of taxes at the state, county, and local levels.
5 Chairperson; Quorum. The members of the commission shall elect a chairperson, vice-chairperson, and clerk from among the members. The first meeting of the commission shall be called by the first-named house member. The first meeting of the commission shall be held within 60 days of the effective date of this section.
6 Reports. The commission shall submit interim reports of its findings and recommendations to the speaker of the house, the senate president, the house clerk, the senate clerk, the governor, and the state library on or before December 1, 1999 and April 1, 2000. The commission shall submit its final report and any recommendations for proposed legislation to the senate president, the speaker of the house of representatives, the senate clerk, the house clerk, the governor, and the state library on or before December 1, 2000.
7 Appropriation. The sum of $50,000 is hereby appropriated to the tax review and adjustment study commission established in section 2 of this act for the biennium ending June 30, 2001, for purposes of paying costs associated with its study. The governor is authorized to draw a warrant for said sum out of any moneys in the treasury not otherwise appropriated.
8 Effective Date.
I. Section 7 of this act shall take effect July 1, 1999.
II. The remainder of this act shall take effect upon its passage.
LBAO
99-0648
12/28/98
HB 107-FN-A - FISCAL NOTE
AN ACT establishing a tax review and adjustment study commission and making an appropriation therefor.
FISCAL IMPACT:
The Legislative Budget Assistant indicates this bill will increase state general fund expenditures by $50,000 in FY 2000. There will be no fiscal impact on county and local expenditures or state, county and local revenues.
This bill appropriates $50,000 in state general funds in FY 2000 to the Tax Review and Adjustment Study Commission.
METHODOLOGY:
This bill establishes a Tax Review and Adjustment Study Commission whose purpose is to study the impact of new taxes proposed as a result of the Claremont II decision. This bill appropriates $50,000 in state general funds to the Commission in FY 2000 for the purposes of the costs of its study.