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SPBG Jan 2011 

Cap Group 

Editorial Board


Brad Cook
 Sheehan Phinney
Bass + Green

Bruce Berke
Sheehan Phinney
Capitol Group 
 
Valerie Acres
 Sheehan Phinney
Capitol Group   
Henry Veilleux
 Sheehan Phinney
Capitol Group  
Erle Pierce
 Sheehan Phinney
Capitol Group
 
 Michael Skelton
Greater Manchester Chamber of Commerce
 michaels@manchester-chamber.org 

Sponsor's Insight - 2/4/11


It was another weather-shortened week in Concord but there was no shortage of business related hearings.

 

In the last issue of Capitol Insights we reported upcoming hearings on several BET/BPT related bills.  The House Ways and Means committee did hold initial hearings on those bills but they are far from being resolved.  In a bill that that Rep. Frank Sapareto dubbed a "bad bill for accountants but a good bill for business," HB154 would increase the threshold amounts for taxation under the business enterprise tax (BET).  Citing that some 20,000 tax returns are filed each year with no taxes due, this bill, if passed, would certainly save the expense of filing those tax forms.  This doesn't even take into consideration the NH's Department of Revenue Administration's (DRA) expense in reviewing those same, revenue free tax forms.  Much of the committee's discussion on this bill centered around the fiscal impact of such a law and it was decided that DRA should meet with the committee to explain their methodology in determining a loss of revenues to the State of more than $6M in 2012.

 

The initial hearing on HB187, relative to the carry forward periods for the business enterprise tax credit against the business profits tax, was also held this week and it had a similar outcome:  DRA believes it will decrease state revenues but it cannot determine by how much.  They will be discussing the fiscal impact with the House Ways and Means Committee too.  The committee does not want to pass a bill without accurate information and a sense of its true affects on revenues.  Both of these bills will continue to be followed closely as this legislature tries to balance the promise of not creating or raising any new taxes and cutting revenues in the face of an expectedly huge budget shortfall.

 

The next full session of House is scheduled for February 9, 2011 when committee recommendations on pending legislation will be taken up for debate.

 

As always, if any chamber member would like to have their thoughts known on any of these bills, be sure to visit the General Court's website to find out to contact your legislator and read the text of any bill.  The website is: http://gencourt.state.nh.us/.

 

Erle Pierce
Sheehan Phinney
Capitol Group


Chamber Insight

 

Rail Authority Repeal Recap

 

A busy week at the State House for the Chamber included a hearing on HB 218, which repeals the New Hampshire Rail Transit Authority (NHRTA). The NHRTA is a volunteer led authority that plans and advocates for expanded passenger and freight rail in New Hampshire.

 

Supporters of HB 218 claim that rail is not a viable form of transportation for New Hampshire and repealing NHRTA now would save the taxpayer money. Perhaps lost on those who support HB 218 is the minor detail that the NHRTA is volunteer led, has no budget, no staff, and has cost New Hampshire taxpayers no funds whatsoever during its four year existence. What have taxpayers got in return from the NHRTA? The authority has successfully secured over $4 million in federal grants to study the feasibility and economic impact of rail. A $0 investment of taxpayer funds yields at $4 million return? That's a great deal for New Hampshire.

 

The viability of rail in New Hampshire, however, is certainly an issue that is up for debate. The Chamber is on record as saying rail is a proven economic catalyst that will create jobs and spur economic development. The Chamber recognizes that many legislators are skeptical about this issue however. Our message on HB 218 is simple - let the NHRTA complete it federal funded studies of the feasibility and economic impact of rail before making important policy decisions. In general, policymakers and the public need and should want to have all the answers before weighing in on the future of our transportation infrastructure.

 

NOL Reform Hearing Next Week

 

Two bills seeking to reform New Hampshire's net operating loss (NOL) laws will debut next week. HB 242 and SB 126 will each be heard in the House or Senate Ways and Means committee. NOL reform has come close to passage the last few sessions but stalled in the House due to concerns over the impact of potential revenue loss on the budget. The Department of Revenue Administration is once again projecting a significant financial impact for each bill. Despite this, it sounds like many legislators are committed to NOL reform this session.

 

State of the State & State of the City Forum

 

Governor Lynch and Manchester Mayor Ted Gatsas will each give their respective "State of the State" and "State of the City" addresses to the Chamber membership next week. With both the state and the city facing historically tough budget years, expect a very interesting forum!

 

State of the State/State of the City

Wednesday, February 9th - 7:30-9:00 a.m.

New Hampshire Institute of Politics

100 Saint Anselm Drive ~ Saint Anselm College

RSVP - Call 603-792-4122

 

Michael Skelton
Greater Manchester Chamber of Commerce
michaels@manchester-chamber.org