FOR IMMEDIATE RELEASE
Contact: Adrienne Rupp
Business and Industry Association
Office: 603.224.5388 x114
Mobile: 603.731.7754
arupp@nhbia.org
BIA: Process for I&D tax extension appalling way to craft public policy
State’s leading broad-based business organization may seek repeal of law extending the interest and dividends tax to distributions from LLCs and partnerships.
CONCORD, N.H. – Dec. 16, 2009 – At today’s NH Department of Revenue Administration hearing on the rules to extend the interest and dividends tax to distributions from LLCs and partnerships, Business and Industry Association President Jim Roche again criticized the Legislature for the manner in which it inserted legislative language representing a major change in tax policy into HB 2 last session. In the final hours of the budget process before the BIA and the broader business
community, particularly small business owners, had a chance to review and comment on the tax proposal, legislators voted to extend the interest and dividends tax to distributions from LLCs and partnerships.
“This is an appalling way to craft public policy,” said Roche in his statement before DRA Commissioner Kevin Clougherty and DRA staff. “The lack of input from the business community, especially small business owners who are most impacted by this law, tax practitioners and the general public is, in large measure, the reason why there continues to be so much confusion, angst, misinformation and misunderstanding over this matter.”
Roche promised that, unless the rule-making process resolves the significant concerns of the business community, his organization would lead an effort next session to repeal the law. “The BIA never supported this tax law change, and we were one of the only business groups, and certainly the most vocal, to raise concerns at the time of its introduction.”
In addition to Roche, Karl Heafield, managing principal for accounting firm Baker Newman Noyes and chair of the BIA’s Fiscal Policy Committee, testified at the DRA hearing and provided specific suggestions to correct sections of the proposed rules that remain ambiguous and unclear.
Download Jim Roche's testimony