HB 1344-FN-A - AS INTRODUCED
2003 SESSION
09/10
HOUSE BILL 1344-FN-A
AN ACT allowing a deduction against the business profits tax for employer-paid health insurance premiums.
SPONSORS: Rep. Corbin, Rock 79; Rep. DiFruscia, Rock 76; Rep. Sweeney, Hills 62; Sen. Larsen, Dist 15; Rep. Estabrook, Dist 21
This bill allows a deduction against the business profits tax for employer-paid health insurance premiums.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03-2197
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Three
AN ACT allowing a deduction against the business profits tax for employer-paid health insurance premiums.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Business Profits Tax; Deduction for Employer-paid Health Insurance Premiums. Amend RSA 77-A:4 by inserting after paragraph XVIII the following new paragraph:
XIX. A deduction of an amount equal to the total amount of health insurance premiums paid by the taxpayer for employees.
2 Effective Date. This act shall take effect July 1, 2004.
LBAO
03-2197
Revised 1/7/04
HB 1344 FISCAL NOTE
AN ACT allowing a deduction against the business profits tax for employer-paid health insurance premiums.
FISCAL IMPACT:
The Departments of Revenue Administration and Insurance state this bill will decrease state unrestricted general fund revenue and expenditures by an indeterminable amount in FY 2005 and each year thereafter. There will be no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department of Revenue Administration states that a deduction against the business profits tax for employer-paid health insurance premiums will decrease Business Profits Tax revenue by an indeterminable amount. Although employer paid health insurance premiums are already deducted from New Hampshire taxable business profits, the Department does not have this information in sufficient detail on tax returns to compute the loss of revenue from this provision.
The Insurance Department states that the cost of the State's health insurance plan may be slightly reduced to the extent the tax burden of New Hampshire insurers through which the State buys coverage may be reduced. The premium tax revenues may also be slightly reduced to the extent insurers may reduce costs because of their reduced tax burden in New Hampshire.