This bill proposes a reduction in the Business Enterprise Tax (BET) rate from 0.55% to 0.50% for all taxable periods ending on or after December 31, 2026. The new legal language inserted into the current law specifies this change by adding a new paragraph (III) to RSA 77-E:2, which states that a tax of 0.50% will be imposed on the taxable enterprise value tax base of every business enterprise during the specified periods. The bill is set to take effect on July 1, 2025.

The fiscal impact of this bill is indeterminable, as the Department of Revenue Administration cannot predict future BET tax revenue accurately. However, it is expected that the reduction in the BET rate will lead to a decrease in revenue for the General Fund and Education Trust Fund, with estimates suggesting a cumulative revenue loss of approximately $46.3 million over the following years. The bill does not authorize new funding or positions and is anticipated to have no additional administrative costs for the Department, as any necessary updates to tax return forms and systems can be absorbed within the existing budget.

Statutes affected:
Introduced: 77-E:2