This bill proposes an amendment to the Business Profits Tax (BPT) distribution, specifically increasing the percentage of revenue allocated to the Education Trust Fund from 41% to 59%. The new legal language replaces the previous percentage, as indicated by the deletion of "41" and the insertion of "59" in RSA 77-A:20-a, I. The commissioner will continue to determine the revenue produced by the BPT for each fiscal year and certify the amounts for deposit into the Education Trust Fund by October 1 of that year.

The fiscal impact of this change is expected to result in a decrease in General Fund revenue and a corresponding increase in Education Trust Fund revenue, with an estimated increase of $158.8 million for the Education Trust Fund based on the FY 2025 plan revenue of $881.3 million. While the total BPT revenue collected will remain unchanged, the reallocation of funds may lead to discrepancies in revenue reporting between the two funds due to the differing splits between the BPT and the Business Enterprise Tax (BET). The bill is set to take effect on July 1, 2025, and is not anticipated to incur additional administrative costs for the Department of Revenue Administration.

Statutes affected:
Introduced: 77-A:20-a