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 specific activities that constitute "settling" or "re-settling," such as providing housing assistance, legal aid, and advice for applying for government benefits. Additionally, it defines "illegal immigrant" to encompass individuals without legal permission to be in the U.S.

Furthermore, the bill introduces a bounty system under RSA 77-E:11, allowing individuals to report non-profits engaging in these activities to the Department of Revenue Administration. Those who report such instances may 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 positions, it is expected to generate indeterminable revenue increases for the General Fund and Education Trust Fund through the expanded tax base. However, the fiscal impact remains uncertain due to a lack of data on the number of non-profits involved in these activities.

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