HB 51-FN-A – AS INTRODUCED

2009 SESSION

09-0080

09/10

HOUSE BILL 51-FN-A

AN ACT reestablishing the initial monthly gross charge exemption to the communications services tax.

SPONSORS: Rep. Vaillancourt, Hills 15; Rep. Winters, Hills 17

COMMITTEE: Ways and Means

ANALYSIS

This bill reestablishes the exemption to the communications services tax for the first $12 of the monthly gross charge for a residential customer’s telephone exchange access and exchange service.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

09-0080

09/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nine

AN ACT reestablishing the initial monthly gross charge exemption to the communications services tax.

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

1 New Section; Communications Services Tax; Exemption. Amend RSA 82-A by inserting after section 5 the following new section:

82-A:5-a Exemption. The first $12 of the monthly gross charge for a residential customer’s telephone exchange access and exchange service shall be exempt from the tax imposed by RSA 82-A:3. If billing is other than on a monthly basis, the exemption allowed shall be prorated to the ratio that the billing period bears to a period of 30 days.

2 Effective Date. This act shall take effect July 1, 2009.

LBAO

09-0080

12/02/08

HB 51-FN-A - FISCAL NOTE

AN ACT reestablishing the initial monthly gross charge exemption to the communications services tax.

FISCAL IMPACT:

The Department of Revenue Administration states this bill will decrease state general fund revenues by $4,472,748 in FY 2010 and each year thereafter. There is no fiscal impact on county and local revenues or state, county and local expenditures.

METHODOLOGY:

The Department states this bill will reinstate the communication services tax $12 monthly exemption for residential customers. Based on August 2008 information compiled by the Public Utilities Commission, there are 443,725 land lines in service owned by Fairpoint Communications. The Department assumes all 443,725 will be eligible for the $12 monthly exemption. The current tax base will decrease by $63,896,400 (12 months * $12 monthly exemption * 443,725 land lines in service). The communication services tax revenue will decrease by $4,472,748 ($63,896,400 decrease in tax base * 7% communications services tax).