HB 0743

HB 743-FN-A - AS INTRODUCED

AN ACT establishing a disposal tax on disposable diapers.

SPONSORS: Rep. V. Clark, Rock 79

This bill establishes a disposal tax of $.01 on each disposable diaper sold at retail in New Hampshire. The tax shall be paid by the person purchasing from a manufacturer, wholesaler, seller, supplier, or distributor for sale to a consumer within the state.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT establishing a disposal tax on disposable diapers.

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

1 New Chapter; Solid Waste Reduction Taxes. Amend RSA by inserting after chapter 78-C the following new chapter:

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

III. "Disposable diaper" means a basic garment for infants and young children made of absorbent material which is not reusable on the infant or young child.

IV. "Taxable period" means a quarterly period of 3 months commencing on January 1, April 1, July 1, and October 1.

I. For the purpose of reducing the volume of solid waste generated by disposable diapers there is hereby established a disposable diaper tax. The tax imposed by this section is in addition to any other taxes. The commissioner shall administer this tax.

II. Effective January 1, 2004, a disposal tax of $.01 shall be levied on each disposable diaper sold at retail in New Hampshire.

III. The person purchasing from a manufacturer, wholesaler, seller, supplier, or distributor of a disposable diaper for sale to a consumer within the state shall be liable for and shall pay the disposable diaper tax to the department. The taxpayer shall be subject to the penalty provisions of RSA 21-J:31 and 33. The commissioner shall collect and enforce, in accordance with rules adopted under RSA 541-A, the payment of taxes required under this chapter and any penalty taxes assessed under RSA 21-J:31 and 33. The commissioner is also authorized to use, as appropriate, the procedures of RSA 80 for such collection and enforcement.

I. Each person who purchases from a person engaged in manufacturing, selling, supplying, or distributing disposable diapers for sale to a consumer within the state during a taxable period shall, on or before the fifteenth day of the first month following the expiration of the taxable period, make a return to the commissioner under such regulations and in such form or manner as the commissioner may prescribe. Returns shall contain full data as required by the commissioner for correct computation of the tax hereunder. All returns shall be signed by the taxpayer or by his authorized representative, subject to the pains and penalties of perjury.

II. Any person who fails to file any return at the time prescribed in this section shall pay at the time the return or declaration is filed, in addition to any tax liability and without assessment or demand, a late filing fee of $100 for each day or fraction thereof which has elapsed between the prescribed filing date and the date of actual filing.

I. Any amount due on the return required by RSA 78-D:3 shall be due and payable at the time the return is filed.

II. Each person who purchases from a person engaged in manufacturing, selling, supplying, or distributing disposable diapers for sale to a consumer within the state who fails to make payment when due shall, in addition, pay a late payment charge equal to 10 percent of the defaulted payment plus interest computed at the rate of one percent per month or fraction thereof from the prescribed payment date to the date payment is actually made. Such late payment charge and interest shall be in addition to any late filing fee which may be due under the provisions of RSA 78-D:3, II.

78-D:5 Taxpayer Records. Each person who purchases from a person engaged in manufacturing, selling, supplying, or distributing disposable diapers for sale to a consumer within the state shall:

I. Keep such records as may be necessary to determine the amount of its tax liability under this chapter.

II. Preserve such records for the period of 3 years or until any litigation or prosecution under this chapter is finally determined.

III. Make such records available for inspection by the commissioner or the commissioner's authorized agents, upon demand, at reasonable times during regular business hours.

78-D:6 Form of Notice. Any notice required by this chapter to be given by the commissioner to a taxpayer shall be by certified mail and in the case of hearings, shall be given at least 10 days before the date of the hearing.

AN ACT establishing a disposal tax on disposable diapers.

The Department of Revenue indicates this bill will increase state unrestricted general fund revenue and expenditures by an indeterminable amount in FY 2004 and each year thereafter. There is no fiscal impact on county and local revenue or expenditures.

The Department states that the Department does not have the data necessary to project the revenue increase from a $.01 tax on each disposable diaper sold in New Hampshire. The Department also states that the cost to administer this tax will be significant, but cannot be estimated at this time.