2001 SESSION

01-0243

09/01

HOUSE BILL 427

COMMITTEE: Ways and Means

ANALYSIS

This bill establishes a commission to study the taxation of trusts and the control of beneficiaries over trust management.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

01-0243

09/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand One

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

1 Commission Established. There is established a commission to study state taxation of trusts and the control of beneficiaries over trust management.

2 Membership and Compensation.

I. The members of the commission shall be as follows:

(a) Three members of the house of representatives, appointed by the speaker of the house.

(b) Three members of the senate, appointed by the president of the senate.

(c) The commissioner of revenue administration, or designee.

(d) One tax accountant, appointed by the board of accountancy.

(e) One attorney with extensive knowledge of trust law, appointed by the New Hampshire Bar Association.

(f) One representative of the New Hampshire Bankers Association, appointed by such association.

II. Legislative members of the commission shall receive mileage at the legislative rate when attending to the duties of the commission.

3 Duties. The commission shall study fairness and equity issues regarding the current taxation of trusts by the state of New Hampshire, including whether taxation under the interest and dividends tax should be on the gross or net income of the trust. The commission shall examine effects of taxation when the beneficiary is a New Hampshire resident and the trust and trustee are out of state. The commission shall also examine the rights of a beneficiary to control a trustee's management decisions and to sue a trustee under Massachusetts law and determine whether a beneficiary who is a resident of New Hampshire has or should have comparable rights under New Hampshire law.

4 Chairperson; Quorum. The members of the commission shall elect a chairperson 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 45 days of the effective date of this section. Seven members of the commission shall constitute a quorum.

5 Report. The commission shall report its findings and any recommendations for proposed legislation to the speaker of the house of representatives, the senate president, the house clerk, the senate clerk, the governor, and the state library on or before November 1, 2001.

6 Effective Date. This act shall take effect upon its passage.