2000 SESSION

00-2361

03/09

HOUSE BILL HB 1556-FN-A

COMMITTEE: Criminal Justice and Public Safety

ANALYSIS

This bill levies a 10 percent tax on the retail sale of class C fireworks. This bill also makes appropriations to the division of fire standards and training.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

00-2361

03/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Chapter; Tax on Fireworks. Amend RSA by inserting after chapter 78-C the following new chapter:

CHAPTER 78-D

TAX ON FIREWORKS

78-D:1 Definitions. In this chapter:

I. "Commissioner" means the commissioner of revenue administration.

II. "Fireworks" means class C common fireworks as defined in RSA 160-B:1.

III. "Manufacturer" means any person in this state engaged in the business of manufacturing fireworks.

IV. "Retailer" means any person in this state engaged in the business of making sales of fireworks to consumers or persons not engaged in the business of making sales of fireworks.

V. "Wholesaler" means any person in this state engaged in the business of making sales of fireworks to persons engaged in the business of making sales of fireworks.

78-D:2 Registration and Tax Imposed.

I. Any retailer possessing a permit issued under RSA 160-B:6, who sells, or offers for sale, fireworks in this state shall register with the commissioner and pay a tax equal to 10 percent of the retail sale of such fireworks.

II. The tax shall be paid to the commissioner on or before the fifteenth day of the calendar month following the month in which the fireworks were sold. If this due date falls on a Saturday, Sunday, or legal holiday, then the taxes due under this section shall be received by the commissioner no later than the next business day.

78-D:3 Required Taxpayer Records; Examinations. Each manufacturer, wholesaler, or retailer shall keep complete and accurate records of all fireworks purchased and sold. Such records shall be safely preserved for at least 3 years in a manner which will insure permanency and accessibility for inspection by the commissioner and the commissioner's agents. The commissioner and the commissioner's agents may examine the books, papers, and records of any manufacturer, wholesaler, or retailer registered under this chapter for the purpose of determining whether the tax imposed by this chapter has been fully paid.

78-D:4 Additional Taxes. If after any examination or inspection pursuant to this chapter, the commissioner or the commissioner's agent determines that there is a deficiency with respect to taxes due on the sale of fireworks, the commissioner shall assess the tax and all applicable additions due the state. At the time such additional assessment is made, the commissioner shall give notice of the assessment to the retailer liable and make demand upon the retailer for immediate payment.

78-D:5 Appeal. Any person aggrieved by a decision of the commissioner may, within 30 days of final determination of the tax by the commissioner, appeal the decision either to the board of tax and land appeals by written application or by petition to the superior court in the county in which the taxpayer resides or, if not a resident of the state, in the county in which it has a place of business or a resident agent. The board of tax and land appeals or the superior court, as the case may be, shall determine de novo the correctness of the action of the commissioner.

78-D:6 Violation. Any retailer who fails, neglects, or refuses to register or pay any tax assessed against the retailer under this chapter shall be guilty of a violation.

78-D:7 Rules. The commissioner shall adopt rules, pursuant to RSA 541-A, relative to:

I. Forms and information required for registrations under RSA 78-D:2.

II. Collection of taxes due under RSA 78-D:2 and RSA 78-D:4.

III. Examinations of taxpayer records under RSA 78-D:3.

2 Appropriations; Division of Fire Standards and Training.

I. The sum of $388,200 for the fiscal year ending June 30, 2001 is hereby appropriated to the department of safety, division of fire standards and training for the purposes of funding facility utilization grants, creating satellite fire training facilities, funding firefighter certification programs, and funding grants to municipal fire departments to purchase training equipment and supplies. This appropriation is in addition to any other funds appropriated to the division of fire standards and training. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

II. The sum of $70,000 for the fiscal year ending June 30, 2001 is hereby appropriated to the department of safety, division of fire standards and training for the purpose of training trailer utilization and vehicle replacement. Moneys appropriated in this paragraph shall be maintained in separate nonlapsing account. This appropriation is in addition to any other funds appropriated to the division of fire standards and training. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

3 Effective Date. This act shall take effect July 1, 2000.

LBAO

00-2361

12/17/99

HB 1556-FN-A - FISCAL NOTE

FISCAL IMPACT: