New Hampshire's Virtual Town Hall
LLC Tax repeal disappears from House bill
"It appears that New Hampshire legislators won’t repeal the infamous "LLC tax" until and unless they pass a budget.
They can’t have their little LLC repeal unless it is in the budget,' said Rep. Dennis Vachon, D-Northwood, a member of the committee of conference on House Bill 1607, of his Senate counterparts.
Repeal of the LLC tax did not make it into HB 1607 -- which deals with reasonable compensation -- that the House and Senate are expected to vote on today.
The whole debate over extending the interest and dividends tax to limited liability company distributions (more commonly known as the "LLC tax") focused attention on the reasonable compensation issue, but House members say the two are unrelated.
Senators – particularly Sen. Bob Odell, R-Lempster, had pushed hard to include the repeal in HB 1607, especially as it became clear that there would be no easy budget compromise over the Senate's gambling proposal. In fact, Odell refused to sign off on the final HB 1607 document because it didn't contain mention of repeal, and he had to be replaced by Senate President Sylvia Larson.
Odell couldn’t be reached by deadline, but Senate Finance Chair Lou D'Allesandro, D-Manchester -- a sponsor of the LLC tax repeal -- said, 'The House gave us the shaft. We were told the repeal would be in 1607 and it wasn’t. The House pulled it out because they are trying to hold it hostage on the budget.'"
-New Hampshire Business Review
They can’t have their little LLC repeal unless it is in the budget,' said Rep. Dennis Vachon, D-Northwood, a member of the committee of conference on House Bill 1607, of his Senate counterparts.
Repeal of the LLC tax did not make it into HB 1607 -- which deals with reasonable compensation -- that the House and Senate are expected to vote on today.
The whole debate over extending the interest and dividends tax to limited liability company distributions (more commonly known as the "LLC tax") focused attention on the reasonable compensation issue, but House members say the two are unrelated.
Senators – particularly Sen. Bob Odell, R-Lempster, had pushed hard to include the repeal in HB 1607, especially as it became clear that there would be no easy budget compromise over the Senate's gambling proposal. In fact, Odell refused to sign off on the final HB 1607 document because it didn't contain mention of repeal, and he had to be replaced by Senate President Sylvia Larson.
Odell couldn’t be reached by deadline, but Senate Finance Chair Lou D'Allesandro, D-Manchester -- a sponsor of the LLC tax repeal -- said, 'The House gave us the shaft. We were told the repeal would be in 1607 and it wasn’t. The House pulled it out because they are trying to hold it hostage on the budget.'"
-New Hampshire Business Review
Tags: LLC tax
Views: 22
Replies to This Discussion
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Permalink Reply by Chuck McKenney on -
Rep. Dennis Vachon's comment is troubling. Either he supports the repeal of the tax or he doesn't. Don't make this issue part of some silly game. This tax will affect thousands of small businesses.
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Permalink Reply by Common Sense on -
Yeah that 'little' tax that will stifle small business and effectively deteriorate the New Hampshire advantage is going to be one of the leading causes for out of touch bureaucrats like Dennis here being voted out of office this fall.
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