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New Hampshire Overrides Governor’s Veto and Enacts the FY 2016-2017 Budget

The New Hampshire Legislature enacted the H2, the fiscal year 2016-2017 budget despite Governor Maggie Hassan’s veto.  This bill provides taxpayers with an amnesty period as well as the establishment of a voluntary disclosure program.  In addition, this bill also lowers the business tax rates for the upcoming years as represented in the chart below. 

 

Periods Ending on or After 12/31/2016

Periods Ending on or After 12/31/2017

Periods Ending on or After 12/31/2019

Business Profits Tax

8.3%    

8.1%

7.9%

Business Enterprise Tax

0.725%

0.7%

0.675%

 

The legislation also establishes a tax amnesty period.  The tax amnesty period will run from December 1, 2015 through February 15, 2016.  This will provide amnesty from the assessment or payment of all penalties and 50% of the applicable interest rate for unpaid taxes reported and paid during the amnesty period.  The amnesty will only apply to taxes due but unpaid on or before February 15, 2016.  More information is sure to come as we approach the date of the program.

In addition to the amnesty program, the legislation also establishes a voluntary disclosure program.  This program is effective July 1, 2015 and will allow a person or entity to voluntarily self-disclose a tax liability to the department and the department will waive applicable penalties and will settle and compromise the taxes and interest due through a voluntary disclosure agreement.  However, if the department has contacted the person or entity or an affiliate of the entity that there is an outstanding liability for tax or inquiries regarding whether or not that person or entity is subject to tax or tax collection responsibilities, then that person or entity will not be eligible to participate in the program.  Also if a person or entity has previously filed a return for a specific tax they will not be eligible for the program, unless good cause is shown.  For more information, click here.

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