This bill changes the effective date of the repeal of the interest and dividends tax from January 1, 2027 to January 1, 2024. It requires all persons who are liable for the tax under RSA 77 as of December 31, 2023, to make a return of such taxes due to the commissioner of revenue administration. The administrative provisions of RSA 77 will remain in effect to permit the audit and collection of taxes upon income taxable under RSA 77 through December 31, 2023. The bill also specifies that the repeal of RSA 77 shall apply to taxable periods beginning after December 31, 2023, and that sections 90-100 of the bill shall take effect on January 1, 2024.

The Department of Revenue Administration states that the fiscal impact of this bill is indeterminable, as it is not able to predict future interest and dividends tax liability or credit carryforward amounts. However, based on certain assumptions, the Department estimates a possible fiscal impact. The estimated impact of repealing the interest and dividends tax is a decrease in revenue of $25.3 million in FY 2022, $106 million in FY 2023, $161.6 million in FY 2024, $186 million in FY 2025, and $187.6 million in FY 2026. The Department would need to update tax return forms and electronic management systems to reflect the accelerated repeal of the tax, but it does not anticipate any additional administrative costs.