This bill proposes to amend the current taxation framework by allowing non-profit entities that engage in settling illegal immigrants to be taxed similarly to for-profit entities. Specifically, it modifies the definition of "business enterprise" in RSA 77-E:1, III to include non-profit organizations involved in activities related to settling or re-settling illegal immigrants, even if they are typically exempt from income taxation under section 501(c)(3) of the Internal Revenue Code. The bill outlines that "settling" and "re-settling" includes providing housing assistance, legal aid, and other services to illegal immigrants. Additionally, it introduces a new provision that allows the Department of Revenue Administration to offer bounties to individuals who report such non-profit activities, with the bounty amount capped at 10% of the business enterprise tax assessed against the reported entity.

Furthermore, the bill mandates the commissioner of the Department of Revenue Administration to establish rules governing the bounty program. The effective date of the bill is set for 60 days after its passage. The fiscal impact of the bill is currently indeterminable, as the Department of Revenue Administration lacks data on the number of non-profits involved in these activities. While the bill is expected to increase revenue for the General Fund and Education Trust Fund, the exact amount remains uncertain. The Department also notes potential implications regarding taxpayer classification and suggests legal review to ensure compliance with constitutional standards.

Statutes affected:
Introduced: 77-E:1, 77-E:11