New Hampshire's Virtual Town Hall
House votes to kill LLC tax
The New Hampshire House narrowly approved legislation today that kills the controversial LLC tax while also raising certain taxes and fees.
House voted 187-182 for SB 450, which attempts to close a budget gap that once stood at about $220 million but now stands at about $300 million, according to the most recent estimates.
Gov. John Lynch had endorsed repeal of the law that taxed limited liability companies. When passed late in the last session of the Legislature it was thought the tax could generate revenue of about $15 million a year.
Among the tax and fee increases are:
House voted 187-182 for SB 450, which attempts to close a budget gap that once stood at about $220 million but now stands at about $300 million, according to the most recent estimates.
Gov. John Lynch had endorsed repeal of the law that taxed limited liability companies. When passed late in the last session of the Legislature it was thought the tax could generate revenue of about $15 million a year.
Among the tax and fee increases are:
- A new capital gains tax of 5 percent on financial gains from the sale of all assets other than a primary residence. It would raise about $30 million in revenue;
- Produces $65 million through bonding moves involving the University of New Hampshire;
- An estate tax of 8 percent on estates worth more than $2 million upon the death of the owner of the assets. It would raise an estimated $2 million in this biennium and $25 million every two years thereafter;
- An insurance premium tax of 2 percent, which is what it was in 2006 when it began a series of annual quarter-point declines. It would raise roughly $23 million;
- An electric generation tax, paid primarily by Seabrook nuclear plant, fossil-fueled and natural gas-fueled plants. It would also repeal the electric consumption tax. Net gain in revenues would be $5.5 million;
- Increasing the fee on pet shops, shelters and kennels from $200 a year to $350 a year. Net gain would be $30,000;
- A tax increase on certain tobacco products, except cigarettes and hand-rolled cigars;The measure included moving women inmates from the state prison in Goffstown to the Sununu Youth Center in Manchester and sending the youth to another facility by June 2011. But that was removed by amendment later in the day, 212-142.
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Replies to This Discussion
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Permalink Reply by Alex Lamb Joselow on -
I agree with the repeal of the LLC tax. Small businesses represent a significant portion of NH employers. Further taxing of LLCs could drive away small businesses, therefore jobs, that the people of NH need. Furthermore, it would stunt LLC development, decreasing new jobs. Also, the lack of discussion is unacceptable. Finally, am I the only one who finds "reasonable compensation" ambiguous?
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