The proposed bill, HB 502-FN, introduces substantial amendments to New Hampshire's business profits tax and the management of state education property tax revenues. It repeals the water's edge combined group provisions, which previously allowed multinational corporations to separate their U.S. operations from foreign affiliates for tax purposes, and reinstates a complete corporate reporting method. This change aims to treat parent corporations and their subsidiaries as a single taxpayer, addressing profit shifting and promoting fairness for local businesses. Additionally, the bill mandates that municipalities subtract 3% from the assessed sum before remitting the remainder of the Statewide Education Property Tax (SWEPT) to the Department of Revenue Administration for deposit into the education trust fund, ensuring proper allocation of funds for educational purposes.

Furthermore, the bill modifies the Low and Moderate Income Homeowners Property Tax Relief program by increasing income thresholds and establishing a new cap for tax relief checks. It deletes previous income thresholds and introduces a sliding scale for households earning between $37,500 and $77,500, while setting an aggregate cap of $30 million for tax relief checks issued in any fiscal year. The bill also establishes a committee to study the property tax relief program, focusing on extending benefits to tenants and analyzing the relationship between household income and property taxation. Overall, these changes aim to enhance tax equity, improve taxpayer awareness of relief programs, and ensure effective management of state education funding.

Statutes affected:
Introduced: 76:8, 76:11-a, 77-A:1, 198:39, 198:57