HB 1491-FN - AS INTRODUCED
2000 SESSION
04/09
HOUSE BILL 1491-FN
AN ACT granting an adjustment to the business enterprise tax paid by transportation companies that contract for the transportation of public school pupils.
This bill grants an adjustment to the enterprise value tax base of transportation companies that contract with municipalities, municipal boards, or school board authorities for the transportation of public school pupils.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
00-2101
04/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand
AN ACT granting an adjustment to the business enterprise tax paid by transportation companies that contract for the transportation of public school pupils.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Business Enterprise Tax; Special Adjustment for the Transportation of Public School Pupils. Amend RSA 77-E:3 by inserting after paragraph III the following new paragraph:
IV. In the case of a business enterprise which is engaged, in whole or in part, in the business activity of transporting public school pupils to and from public schools or public school activities by virtue of a contract with a municipality, municipal board, or school board authority, a deduction from the enterprise value tax base of such amounts as are derived from a valid, lawful contract with a municipality, municipal board, or school board authority for transportation of public school pupils.
2 Effective Date. This act shall take effect July 1, 2000.
LBAO
00-2101
12/15/99
HB 1491-FN - FISCAL NOTE
AN ACT granting an adjustment to the business enterprise tax paid by transportation companies that contract for the transportation of public school pupils.
FISCAL IMPACT:
The Department of Revenue Administration indicates this bill will decrease state general fund revenue by $129,000 in FY 2001 and each year thereafter and will decrease education trust fund revenue by $129,000 in FY 2001 and each year thereafter. The Department indicates state general fund expenditures will increase by $5,000 in FY 2001. There will be no fiscal impact to county and local revenue or expenditures.
METHODOLOGY:
The Department states it used FY 1998 transportation expenditures for public school students, $51,664,000, to estimate the reduction in the enterprise value base. The enterprise value base is the amount that is multiplied by the .5% Business Enterprise Tax (BET) rate to determine BET tax receipts. The .5% rate times the $51,644,000 generates a reduction of $258,000 in business enterprise tax revenue collections.
Chapter 17, Laws of 1999 raised the BET rate from .25% to .5%, and required that revenue from the increase be deposited into the education trust fund. Thus, in FY 2001 and each year thereafter, the amount of the revenue reduction will be shared equally by the general fund and the education trust fund.
The Department states general fund expenditures will increase by $5,000 in FY 2001; the cost to update the computer system, modify tax forms and promulgate rules.