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 aimed at helping illegal immigrants achieve residency or access government benefits.

Additionally, the bill introduces a bounty program under RSA 77-E:11, allowing individuals to report non-profits engaged in these activities to the Department of Revenue Administration and potentially receive a bounty of up to 10% of the business enterprise tax assessed against the reported entity. The Department is tasked with establishing rules for this bounty program. The bill is set to take effect 60 days after passage, and while it does not provide specific funding or new positions, it is expected to generate indeterminable revenue increases for the General Fund and Education Trust Fund through the expanded tax base. However, there are concerns regarding the potential classification of taxpayers and the administrative burden this may place on state agencies.

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