SB505: authorizing CROP zone tax credits for taxpayers within the town of Whitefield.

SB 505-FN-A-LOCAL - AS AMENDED BY THE SENATE

03/04/04 0688s

2004 SESSION

04-3259

09/10

SENATE BILL 505-FN-A-LOCAL

AN ACT authorizing CROP zone tax credits for taxpayers within the town of Whitefield.

SPONSORS: Sen. Gallus, Dist 1; Sen. Flanders, Dist 7; Sen. Clegg, Dist 14; Rep. R. Cooney, Rock 76; Rep. Tholl, Coos 2; Rep. H. Richardson, Coos 2

COMMITTEE: Energy and Economic Development

ANALYSIS

This bill authorizes the commissioner of resources and economic development to enter into agreements with taxpayers located in the town of Whitefield which will result in certain CROP zone tax credits.

The bill also makes a technical correction to the RSA provision regarding determination of CROP zone tax credits.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/04/04 0688s

04-3259

09/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Four

AN ACT authorizing CROP zone tax credits for taxpayers within the town of Whitefield.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Paragraph; Crop Zone Credit Agreements; Town of Whitefield Taxpayers. Amend RSA 162-N:4 by inserting after paragraph II the following new paragraph:

III. The commissioner of resources and economic development may enter into agreements with taxpayers located in the town of Whitefield which will result in CROP zone tax credits under RSA 162-N:7 in the estimated amount of $10,000,000, provided that any agreement has the prior authorization by:

(a) The legislative body of the town of Whitefield; or

(b) The governing body of the town of Whitefield after conducting a public hearing. 2 Technical Correction; Calculation of CROP Zone Tax Credits. Amend RSA 162-N:7 to read as follows:

162-N:7 CROP Zone Tax Credits. CROP zone tax credit shall be determined by adding together the amount determined in RSA [162-N:5, I] 162-N:6, I and RSA [162-N:5, II] 162-N:6, II and multiplying the result by the current tax rate under RSA 77-E. The CROP zone tax credit shall be available to the taxpayer only for tax liabilities arising during the 5 consecutive tax periods following the signing of the agreement. CROP zone tax credits shall be applied against tax due under RSA 77-E. For the purpose of the credit allowed under RSA 77-A:5, X, the CROP zone credit shall be considered taxes paid under RSA 77-E. CROP zone tax credits shall not be transferable.

3 Effective Date. This act shall take effect 60 days after its passage.

LBAO

04-3259

Revised 3/5/04

SB 505 FISCAL NOTE

AN ACT authorizing CROP zone tax credits for taxpayers within the town of Whitefield.

FISCAL IMPACT:

The Departments of Revenue Administration and Resources and Economic Development indicate this bill will have no fiscal impact on state, county and local revenue or expenditures.

METHODOLOGY:

The Department of Revenue Administration states this bill allocates a portion of the CROP credit to the town of Whitefield, but does not change the total amount of credit generated or distributed.

The Department of Resources and Economic Development states that any additional administrative costs that result from this bill can be absorbed within the Department's existing budget.