December 12, 2019

New Hampshire Adjusts Rates, Possibly Adopts Singles Sales Factor Apportionment

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first_imgThe businessenterprise rate after 2021 also depends on revenue collected. If the amountcollected is: New Hampshire had existingrate changes set to take effect. The law repealed the future changes. The rate,for tax periods ending on or after: After 2021, New Hampshire ischanging the business profits and business enterprise rates. New Hampshire enactedlegislation: 6% ormore above projected revenue, the tax rate will be 0.5%;6% ormore below projected revenue, the tax rate will be 0.675%; orif between106% and 94% of projected revenue, the tax rate will remain 0.6%. The business profits tax rate is now: Business Profits Tax Rate Therate after 2021 is dependent on revenue collected for the fiscal year endingJune 30, 2020. If the amount collected is: 6% overprojected revenue, the tax rate will be 7.5%;6% ormore below projected revenue, the tax rate will be 7.9%; orifbetween 106% and 94% of projected revenue, the tax rate will remain 7.7%. The lawalso repealed existing future rate changes for the business enterprise tax. Therate for tax periods ending on or after: Singles sales factor apportionment will apply for the business profits tax to tax periods ending on or after December31, 2022. Currently, New Hampshire uses a three-factor formula with a double-weighted sales factor. Tax Rate Changes The business enterprise tax rate is now: Thecommittee must provide a report by December 1, 2020. Not a subscriber? Sign up for a free trial or contact us for a representative. By Andrew Soubel, J.D. Single Sales Factor Apportionment changing the rates of thebusiness profits and the business enterprise taxes; andpossibly adopting singles salesfactor apportionment for the business profits tax. 7.7%after December 31, 2019; and7.5%,7.7%, or 7.9% after December 31, 2021, depending on revenue collections. December 31, 2018 is 7.9%;December 31, 2019,the rate was going to be 7.7%; andDecember 31, 2021,the rate was going to be 7.5%.  apportionment of gross business profits under the business profits tax; andwhether to authorize single sales factor apportionment for the business profits tax and business enterprise tax. Login to read more on CCHAnswerConnect. Business Enterprise Tax Rate However,the legislation also creates the Legislative Committee on Apportionment. If a majority of the committee votes torescind single sales factor apportionment, the changes will not take effect. 0.6%after December 31, 2019; and0.675%,0.5%, or 0.6% after December 31, 2021, depending on revenue collections. The committeewill study: December31, 2018 is 0.675%;December31, 2019 was going to be 0.6%; andDecember31, 2021 was going to be 0.5%.last_img