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 fiscal impact of this legislation is currently indeterminable, as the Department lacks data on the number of non-profits involved in these activities and the potential revenue generated from the expanded tax base. While the bill does not allocate new funding or positions, it may necessitate updates to forms and rules, which the Department anticipates can be managed within its existing budget. There are concerns regarding the potential for unconstitutional classifications of taxpayers, prompting a recommendation for legal review.

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