HB 1158-FN-A – AS INTRODUCED
2008 SESSION
09/10
HOUSE BILL 1158-FN-A
AN ACT increasing the exemption for persons 65 years of age and older and establishing a credit for persons 70 years of age and older under the interest and dividends tax.
SPONSORS: Rep. Rowe, Hills 6; Rep. Mooney, Hills 19; Rep. Haefner, Hills 27; Rep. Ulery, Hills 27; Sen. Kenney, Dist 3
This bill increases the exemption for persons 65 years of age and older and establishes a credit for the amount of tax due for persons 70 years of age and older under the interest and dividends tax.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
08-2123
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
AN ACT increasing the exemption for persons 65 years of age and older and establishing a credit for persons 70 years of age and older under the interest and dividends tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Exemption Increased; Credit Established. Amend RSA 77:5 to read as follows:
77:5 Exemptions and Credits.
I. Each taxpayer shall have the following exemptions:
[I.] (a) Income of $2,400.
[II.] (b) An additional [$1,200] $2,400 if either or both taxpayers are 65 years of age or older on the last day of the tax year.
[III.] (c) An additional $1,200 if either or both taxpayers are blind.
[IV.] (d) An additional $1,200 if either or both taxpayers are disabled, unable to work, and have not yet reached their sixty-fifth birthday.
II. Each taxpayer 70 years of age or older shall receive a credit in the amount of tax due under this chapter.
2 Effective Date. This act shall take effect July 1, 2008.
LBAO
08-2123
10/24/07
HB 1158-FN-A - FISCAL NOTE
AN ACT increasing the exemption for persons 65 years of age and older and establishing a credit for persons 70 years of age and older under the interest and dividends tax.
FISCAL IMPACT:
The Department of Revenue Administration has determined this bill will decrease general fund revenue by $38,500,000 in fiscal year 2009 and each year thereafter. There will be no fiscal impact on county and local revenues or state, county, and local expenditures
METHODOLOGY:
The Department states this bill establishes an additional exemption of $1,200 from the interest and dividends tax for filers age 65 and older, and establishes a credit for the amount of tax due for filers age 70 and older. The Department assumes this law would take effect July 1, 2008 and the costs of administering it could be absorbed within the existing budget. The Department calculated the estimated revenue decrease for FY 2009 based on tax year 2005 returns. In that year there were 21,312 returns that would have been affected by the tax changes in this bill. The Department using these returns, calculates a revenue decrease of $278,678 for the expanded 65-69 exemption and a revenue decrease of all tax paid by 70 plus filers of $22,528,039. The Department, therefore, estimates the total 2005 general fund revenue decrease to be $22,806,717 which is 30.53% of total 2005 interest & dividend tax revenue. When this same ratio is applied to the budgeted FY 2009 interest & dividends tax revenue of $126 million, the revenue decrease for FY 2009 equals $38.5 million. The Department also states that depending on the timing of the passage of the bill and taxpayer response, it is possible that $19 million of the $38.5 million projected FY 2009 revenue decrease would occur in FY 2008 and the remaining $19.5 million in FY 2009.