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Dp 14 New Hampshire Department Of Revenue Administration Revenue Nh Demand Assistance

>> WELCOME TO NEW HAMPSHIRE'S.BUSINESS, I'M FRED KOCUR..NEW HAMPSHIRE BUSINESS TAXES,.THEY HAVE BEEN IN DISPUTE AT THE.STATE LEGISLATURE THIS YEAR AND.BETWEEN THE GOVERNOR AND THE.LEGISLATURE, BUT A COMPROMISE.WAS REACHED THIS WEEK AND THE.COMPROMISE IS INTERESTING, IT.LEAVES RATES PRETTY MUCH THE WAY.NER THIS YEAR AND NEXT, BUT IT.TIES FUTURE RATES TO STATE.REVENUES AND WE'RE GOING TO TALK.ABOUT THAT WITH MY GUEST..BUT FIRST, LET ME SHOW YOU WHAT.THE RATES ARE GOING TO BE THE.REST OF THIS YEAR AND OF COURSE.NEXT..BUSINESS PRODUCTS TAX 7.7% FOR.TWO YEARS AND BUSINESS.ENTERPRISE TAXES 0.6% FOR 19 AND.20..WITH ME TO TALK ABOUT THIS AND.ABOUT THE INTERESTING AND REALLY.DIFFERENT TIE OF THE BUSINESS.TAXES TO STATE REVENUES ARE TWO.PEOPLE WHO KNOW THIS WELL AND.WHO HAVE BEEN AT THE STATE HOUSE.THE WHOLE TIME..DAVID, THE SENIOR.VICE-PRESIDENT..BUSINESS INDUSTRY ASSOCIATION OF.NEW HAMPSHIRE, WELCOME..>> THANK YOU..>> AND BRUCE MURPHY, OF THE.FEDERATION OF INDEPENDENT.BUSINESSES..>> GOOD MORNING, FRED..>> NICE TO HAVE YOU HERE..FIRST OF ALL, LET'S SET THIS UP.BY TALKING ABOUT WHAT THE.DISPUTE WAS BETWEEN THE GOVERNOR.AND LEGISLATURE OVER THE.BUSINESS TAX RATES SO IT'S MORE.EASILY UNDERSTOOD..DAVE, WHY DON'T YOU START..>> THIS STARTED FOUR YEARS AGO.WHEN THERE WAS A PHASED-IN.REDUCTION OF BUSINESS TAXES..NEW HAMPSHIRE HAD ONE OF THE.HIGHEST BUSINESS TAXES AND WE.FELT IT WAS DRAGGING THE HIGHWAY.SO THERE WAS A CYCLE TO LOWER.THE BUSINESS TAXES..THIS YEAR THERE WAS A CHANGE OF.POWER AT THE STATE HOUSE AND.DEMOCRATS WHO NOW CONTROLLED.BOTH THE HOUSE AND SENATE.THOUGHT THAT THE STATE WAS.LOSING REVENUE FROM BUSINESS.TAXES AND WERE SEEKING TO.INCREASE THEM..THE GOVERNOR FELT DIFFERENTLY.AND ULTIMATELY WHEN THE BUDGET.WAS VETOED, THAT SET UP THE.SITUATION FOR WHERE WE ARE..>> THE COMPROMISE FOR WHERE WE.ARE THE PAST WEEK..>> IT BRULE -- TRULY IS A.COMPROMISE AND IT HE BEGINNING.OF THE 2019 SECTION WHEN WE WERE.LOOKING AT FOUR, FIVE, SIX.DIFFERENT BILLS THA WOULD HAVE.INCREASED THE COMPROMISE CAME.OUT..>> LET'S GO TO THE COMPROMISE.WHICH IS THE INTERESTING PART.BECAUSE IT TIES BUSINESS TAX.RATES TO STATE REVENUES AND HERE.IS THE FIRST ONE..NEW HAMPSHIRE BUSINESS TAXES CAN.GO UP IN 2021, IF THE GENERAL.EDUCATION FUND REVENUES ARE.BELOW PLAN BY 6%..BUSINESS PRODUCTS TAXES WOULD GO.UP TO 7.9% AND THE BUSINESS.ENTERPRISE TAX GO UP TO 6.OF.75%..HOWEVER, IF THE NEW HAMPSHIRE.BUSINESS TAXES CAN GO DOWN IN.2021, IF THEY GO DOWN, IF THE.GENERAL AND EDUCATION FUND.REVENUES ARE ABOVE PLAN BY 6%,.THEN THE BUSINESS PRODUCTS TAX.GOES DOWN TO 7.5% AND THE.BUSINESS ENTERPRISE TAX GOES.DOWN TO 0.5 PERCENT..OK..THIS COULD BE CONFUSING..EXPLAIN THIS, BRUCE..>> I'LL GIVE IT A SHOT..PERHAPS THE BEST THING THAT CAME.OUT THIS WEEK IS THE FACT THAT.WE HAVE SOME PREDICTABILITY, WE.HAVE SOME CERTAINTY WHERE TAXES.ARE..THIS YEAR, AND NEXT YEAR, AND.WITH THE POTENTIAL CHANGES THAT.YOU'VE DESCRIBED, WE NEED TO--.IT GIVES THE BUSINESSES A CHANCE.TO PLAN..>> WHO IS GOING TO MAKE THIS.DECISION, DAVE, ABOUT WHERE.THOSE RATES ARE BASED ON THE.REVENUES AND LEGISLATURE, I.ASSUME?.>> WELL, IN A SENSE, ALTHOUGH.THE DECISION WILL BE MADE ON THE.STATE REVENUE REPORT THAT'S.PRODUCED BY THE DEPARTMENT OF.ADMINISTRATION..THEY'VE HAD THE ACCRUAL AND.AUDITING PROCESS..THE NUMBERS ARE THERE AND WE'LL.BE ABLE TO JUDGE WHERE WE'RE AT..THE DANGER?.THIS IS--...I WAS GOING TO ASK YOU THAT..>> THE DANGER IN THIS IS A LOT.OF THIS WILL BE DEPENDENT ON THE.ECONOMY..WE'VE HAD A STRONG ECONOMY AND.IT'S CONTINUING TO CHUG ALONG..AND IF THAT CONTINUES, WE.SHOULDN'T HAVE A PROBLEM.REACHING THOSE THRESHOLDS..IF THE ECONOMY FALTERS, THEN WE.MIGHT BE LOOKING AT TROUBLE..>> YEAH..THIS CREATES A LITTLE.UNCERTAINTY FOR 2021, DOESN'T.IT, FOR BUSINESSES?.>> IT DOES..BUT IT GIVES AT LEAST A ROAD MAP.TO WHAT THE OUTCOMES COULD BE..>> YEAH..>> AND AS WE WERE ALLOWING TO.EARLIER, OFF CAMERA, WE'RE.SAYING THAT, YOU KNOW, YOU HAVE.A SITUATION WHERE THESE REVENUES.ARE TRACKED ON A MONTHLY BASIS,.SO IF WE SEE THOSE TRACKS AND WE.SEE THE TRACK FALLING SHORT, THE.REVENUES FALLING SHORT, THEN,.YOU KNOW, BUSINESSES CAN MAKE.THEIR DECISIONS..>> LET ME QUICKLY GO TO THE LAST.GRAPHIC..IT'S THE COMPARISON OF THE.STATES AND THEIR CORPORATE.INCOME TAX RATES IN NEW ENGLAND.STATES..CONNECTICUT AT 9% IS THE HIGHEST.AND MAINE AT 8.93, VERMONT AT.8.5, MASSACHUSETTS AT 8 AND NEW.HAMPSHIRE AT 7.7 AND OF COURSE,.AS WE SAID, AND RHODE ISLAND AT.7 AT THE LOWEST..OF COURSE, THOSE RATES ARE MADE.UP IN DIFFERENT WAYS IN THOSE.STATES, BUT THOSE ARE THE.NUMBERS THAT ARE CURRENT..I WANT TO THANK MY GUESTS, ALL.TOO SHORT ON A VERY COMPLEX.SUBJECT..DAVE OF THE BUSINESS INDUSTRY.ASSOCIATION AND B.

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