HB 235-FN-A - FINAL VERSION
13jan00...3053h
3/16/00 3818s
2000 SESSION
09/10
HOUSE BILL 235-FN-A
AN ACT increasing exemptions under the interest and dividends tax.
This bill increases exemptions under the interest and dividends tax.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
3/16/00 3818s
13jan00...3053h
99-0195
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand
AN ACT increasing exemptions under the interest and dividends tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Individuals, Businesses, Fiduciaries. Amend RSA 77:3, I(a)-(c) to read as follows:
(a) Individuals who are inhabitants or residents of this state for any part of the taxable year whose gross interest and dividend income from all sources exceeds [$2,400] $3,000 during that taxable period.
(b) Partnerships, limited liability companies, associations, and trusts, the beneficial interest in which is not represented by transferable shares, whose gross interest and dividend income from all sources exceeds [$2,400] $3,000 during the taxable year, but not including a qualified investment company as defined in RSA 77-A:1, XXI, or a trust comprising a part of an employee benefit plan, as defined in the Employee Retirement Income Security Act of 1974, section 3.
(c) Fiduciaries deriving their appointment from a court of this state whose gross interest and dividend income from all sources exceeds [$2,400] $3,000 during the taxable year.
2 Increase in Exemption. Amend RSA 77:5, I and II to read as follows:
I. Income of [$2,400] $3,000.
II. An additional [$1,200] $3,000 if either or both taxpayers are 65 years of age or older on the last day of the tax year.
3 Filing of Returns. Amend RSA 77:18, IV(a) and (b) to read as follows:
(a) Every individual whose total interest and dividend income is less than [$2,400] $3,000 for a taxable period.
(b) For joint filers whose total interest and dividend income is less than [$4,800] $6,000 for a taxable period.
4 Effective Date. This act shall take effect July 1, 2002.
Vetoed 5/19/00
LBAO
99-0195
12/23/98
HB 235-FN-A - FISCAL NOTE
AN ACT increasing the exemption amount under the interest and dividends tax.
FISCAL IMPACT:
The Department of Revenue Administration indicates this bill will decrease state revenue by $10.2 million in FY 2000 and each year thereafter. There is no fiscal impact on county and local revenues or state, county and local expenditures.
METHODOLOGY:
The Department determined the impact on this bill by using actual interest and dividends tax returns filed for tax year 1997 and substituting the $2,400 and $4,800 current individual and joint exemptions with the proposed $5,200 and $10,400 individual and joint exemptions. Minor adjustments were made for tax returns received, but not currently available in the system for study.
The proposed increased exemptions netted a $10.2 million tax reduction ($61.8 million - $51.6 million; 1997 actual revenue minus FY 1997 revenue with new exemptions applied). This reduction was calculated in constant 1998 dollars with no adjustment for tax growth or inflation. The Department further states this bill can be administered without any additional staff or funding.