2003 SESSION

03-0193

09/10

HOUSE BILL 752

COMMITTEE: Ways and Means

ANALYSIS

This bill changes the process for distribution of business tax revenues to the education trust fund.

This bill was requested by the department of revenue administration.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0193

09/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

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

1 Distribution of Business Profits Tax Revenues. RSA 77-A:20-a is repealed and reenacted to read as follows:

77-A:20-a Distribution of Funds. The commissioner shall certify, and the state treasurer shall distribute, funds deposited pursuant to this chapter as provided in RSA 198:39-a.

2 Distribution of Business Enterprise Tax Revenues. RSA 77-E:14 is repealed and reenacted to read as follows:

77-E:14 Distribution of Funds. The commissioner shall certify, and the state treasurer shall distribute, funds deposited pursuant to this chapter as provided in RSA 198:39-a.

3 Education Trust Fund Sources. Amend RSA 198:39, I(a) to read as follows:

(a) Funds certified to the state treasurer by the commissioner of revenue administration pursuant to RSA [77-A:20-a] 198:39-a, relative to business [profits taxes] tax revenues.

4 New Section; Certification and Distribution of Business Tax Revenues. Amend RSA 198 by inserting after section 39 the following new section:

198:39-a Certification and Distribution of Business Tax Revenues.

I. "Business tax," for the purposes of this section, means the net tax imposed pursuant to RSA 77-A and 77-E.

II. The commissioner shall determine an amount equal to 33 percent of the business tax revenue, net of refunds, produced by the taxes imposed by RSA 77-A:2 and 77-E:2 for each fiscal year and shall certify such amount to the state treasurer by October 1 of that year for the deposit in the education trust fund established by RSA 198:39.

III. The commissioner shall make quarterly estimates of the amount of business tax revenue that will be produced for the next fiscal year and shall certify such amounts to the state treasurer for deposit in the education trust fund established by RSA 198:39. Such estimates shall be certified on June 1, September 1, December 1, and March 1 of each year.

5 Repeal. RSA 198:39, I(b), relative to a separate calculation for the distribution of business enterprise tax revenues to the education trust fund, is repealed.

6 Effective Date. This act shall take effect July 1, 2003.