This bill proposes a reduction in the Business Enterprise Tax (BET) rate from 0.55% to 0.50% for all taxable periods ending on or after December 31, 2027. The new legal language amends RSA 77-E:2 by inserting a new paragraph that specifies the reduced tax rate, while deleting the previous reference to the year 2026. Additionally, the effective date of the act is changed from July 1, 2025, to July 1, 2026, as indicated by the inserted and deleted language in the bill.

The fiscal impact of this tax reduction is indeterminable, as the Department of Revenue Administration cannot predict future BET tax revenue accurately. However, it is expected that the reduction will lead to a decrease in revenue for the General Fund and Education Trust Fund, with estimates suggesting a cumulative revenue loss of approximately $49.9 million by fiscal year 2029. The bill does not provide funding or authorize new positions, and any necessary updates to tax return forms and electronic systems are anticipated to be manageable within the Department's existing budget.

Statutes affected:
Introduced: 77-E:2
As Amended by the House: 77-E:2