Bill Text: NH SSSB1 | 2018 | Regular Session | Amended
Bill Title: Establishing a commission to study ways to protect the New Hampshire advantage for New Hampshire businesses as a result of the uncertainty created from the recent United States Supreme Court decision on the collection of certain sales and use taxes.
Spectrum: Slight Partisan Bill (Republican 4-2)
Status: (Engrossed - Dead) 2018-07-25 - Sen. Bradley Moved Nonconcur with the House Amendment, Regular Calendar 23Y-0N, Motion Adopted; 07/25/2018; [SSSB1 Detail]
Download: New_Hampshire-2018-SSSB1-Amended.html
SPECIAL SESSION SB 1-FN - AS AMENDED BY THE HOUSE
25July2018... 2129h
2018 SESSION
18-3036
10/01
SPECIAL SESSION SENATE BILL 1-FN
SPONSORS: Sen. Bradley, Dist 3; Sen. Morse, Dist 22; Sen. Woodburn, Dist 1; Rep. Chandler, Carr. 1; Rep. Hinch, Hills. 21; Rep. Shurtleff, Merr. 11
COMMITTEE:
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AMENDED ANALYSIS
This bill establishes a commission to study ways to protect the New Hampshire advantage for New Hampshire businesses as a result of the uncertainty created from the recent United States Supreme Court decision on the collection of certain sales and use taxes.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25July2018... 2129h 18-3036
10/
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter; Commission to Study Ways to Protect the New Hampshire Advantage for New Hampshire Businesses as a Result of the Uncertainty Created From the Recent United States Supreme Court Decision on the Collection of Certain Sales and Use Taxes. Amend RSA by inserting after chapter 78-D the following new chapter:
CHAPTER 78-E
COMMISSION TO STUDY WAYS TO PROTECT THE NEW HAMPSHIRE ADVANTAGE FOR NEW HAMPSHIRE BUSINESSES AS A RESULT OF THE UNCERTAINTY CREATED FROM THE RECENT UNITED STATES SUPREME COURT DECISION ON THE COLLECTION OF CERTAIN SALES AND USE TAXES
78-E:1 Commission Established. There shall be a commission to study ways to protect the New Hampshire advantage for New Hampshire businesses as a result of the uncertainty created from the United States Supreme Court decision in South Dakota v. Wayfair, which changed the long held view of the physical presence rule.
I. The commission shall be composed of 13 members, as follows:
(a) The attorney general, or designee.
(b) The commissioner of the department of revenue administration, or designee.
(c) The commissioner of the department of business and economic affairs, or designee.
(d) A member of the Business and Industry Association of New Hampshire, appointed by the governor.
(e) A member of the New Hampshire Retail Association, appointed by the president of the senate.
(f) A New Hampshire merchant, appointed by the speaker of the house of representatives.
(g) A New Hampshire remote seller, appointed by the president of the senate.
(h) A tax attorney or tax accountant, appointed by the speaker of the house of representatives.
(i) Three members of the house of representatives, one of whom shall be from the minority party, appointed by the speaker of the house of representatives.
(j) Two members of the senate, one of whom shall be from the minority party, appointed by the president of the senate.
II. The duties of commission shall include, but are not limited to:
(a) Monitoring subsequent United States Supreme Court decisions relating to the issues raised in South Dakota v. Wayfair, Inc., and any other relevant court decisions that may impact New Hampshire businesses’ obligations to collect sales and use taxes on behalf of foreign taxing jurisdictions or authorities.
(b) Monitoring attempts by other states to impose sales and use tax collection obligations on New Hampshire remote sellers and remote service providers.
(c) Studying the creation of a private right of action for violations of privacy in transactions associated with any attempts to impose sales and use tax collection obligations on New Hampshire remote sellers.
(d) Reviewing court cases regarding the Full Faith and Credit Clause of the United States Constitution to determine how these cases impact New Hampshire’s ability to protect New Hampshire remote sellers from sales and use tax collection obligations, including but not limited to the following decisions:
(1) Franchise Tax Board of California v. Hyatt, 136 S.Ct.1277 (2016).
(2) Pacific Employers Ins. Co. v. Industrial Accident Commission of State of California, 306 U.S. 493 (1939).
(3) Bradford Electric Light Co. v. Clapper, 286 U.S. 145 (1932).
(e) Addressing concerns related to costs incurred by New Hampshire businesses in the collection of sales and use taxes on behalf of a foreign taxing jurisdiction or authority.
III. The commission may solicit information from any person or entity the commission deems relevant to its duties.
IV. The members of the commission shall elect a chairperson from among the members. The first meeting of the commission shall be called by the first-named senate member. The first meeting of the commission shall be held within 30 days of the effective date of this section. Seven members of the commission shall constitute a quorum.
V. The commission shall report its findings and any recommendations for proposed legislation to the president of the senate, the speaker of the house of representatives, the senate clerk, the house clerk, the governor, and the state library, in an initial report on or before November 1, 2018, an interim report on or before March 1, 2019, and a final report on or before June 1, 2019.
2 Repeal of Commission. RSA 78-E, relative to the establishment of a commission to study ways to protect the New Hampshire advantage for New Hampshire businesses as a result of the uncertainty created from the recent United States Supreme Court decision on the collection of certain sales and use taxes, is repealed.
I. Section 2 of this act shall take effect June 1, 2019.
II. The remainder of this act shall take effect upon its passage.
18-3036
7/19/18
SSSB 1-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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STATE: | FY 2019 | FY 2020 | FY 2021 | FY 2022 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ X ] Other - | |||
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METHODOLOGY:
The Office of Legislative Budget Assistant states this bill directs foreign taxing authorities to register with the Department of Justice prior to taking any action to determine or impose a sales or use tax liability against a New Hampshire remote seller and allows the Department to establish a fee sufficient to cover the administrative duties contained in this bill. To the extent the Department has expenditures associated with the implementation of this bill and is unable to collect a fee, they may request additional general funds. The Department may have an indeterminable increase in state restricted revenue and state expenditures.
This bill may have an indeterminable impact on Judicial Branch expenditures to the extent this bill results in increased litigation in New Hampshire courts.
Due to time constraints, we are unable to determine if this bill will impact other state agencies.
AGENCIES CONTACTED:
None
