HB 241-FN-A – AS INTRODUCED
2009 SESSION
09/10
HOUSE BILL 241-FN-A
AN ACT increasing the interest and dividends tax exemption for income-eligible persons 65 years of age or older.
This bill increases the interest and dividends tax exemption for income-eligible persons 65 years of age or older.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-0046
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT increasing the interest and dividends tax exemption for income-eligible persons 65 years of age or older.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Interest and Dividends Tax Exemption. Amend RSA 77:5 by inserting after paragraph IV the following new paragraph:
V. An additional $2,400 if either or both taxpayers are 65 years of age or older on the last day of the tax year, and the taxpayer’s or taxpayers’ adjusted gross income for purposes of the taxpayer’s or taxpayers’ federal income tax return for that tax year is less than $50,000.
2 Applicability. Section 1 of this act shall be in effect on account of taxable periods ending on or after July 1, 2009.
3 Effective Date. This act shall take effect July 1, 2009.
LBAO
09-0046
12/29/08
HB 241-FN–A - FISCAL NOTE
AN ACT increasing the interest and dividends tax exemption for income-eligible persons 65 years of age or older.
FISCAL IMPACT:
The Department of Revenue Administration states this bill will decrease state general fund revenue by an indeterminable amount in FY 2009 and each year thereafter. There will be no fiscal impact on county and local revenue or state, county, and local expenditures.
METHODOLOGY:
The Department of Revenue Administration states this bill gives each person 65 years of age or older an additional exemption of $2,400 off their interest and dividends taxable income if their federal adjusted gross income is less than $50,000. The Department reviewed 2006 tax year data and determined there were 26,608 returns filed by individuals taking at least one elderly exemption and who had taxable interest and dividends income. Of those individuals, 9,564 had a federal adjusted gross income less than $50,000. The Department combined this data assuming a tax savings of $120 per taxpayer ($2,400 at the 5% tax rate) and used a factor to recognize the tax decrease will be the lesser of tax paid or the new exemption. The Department calculates state general fund revenue will decrease by $1,137,795 in FY 2010, and depending on the effective date of the bill, state revenue may also decrease in FY 2009. The Department did not calculate the revenue decrease for FY 2011 through FY 2013.