Welcome to the NECA!

Each state in NECA’s region has now reconvened for a new session and as a result, there is a good amount of activity to report. Below is a list of bills by state that may be of concern to those in our industry and their corresponding docket number.

NECA members can view the March 2011 E-Newsletter in the "Members Only" section of the website for the details of these bills.

MAINE
LD 176: An Act Regarding Sales Use Tax Audit Procedures and Enforcement. The bill prohibits the retroactive assessment of sales and use tax when a taxpayer who should have collected or paid the tax does not have reason to know that sales or use tax applies to that type of transaction. The bill also specifies situations in which a person had reason to know that a sales or use tax applies. Full text of the bill can be found at http://www.mainelegislature.org/legis/bills/bills_125th/billtexts/SP006201.asp

LD 207: An Act to Amend the Laws Regarding Tips Used in Payment of Service Employees. The bill changes the laws regarding the tip credit for employers as used in the payment of service employees by eliminating the provision that specifies that tips received by a service employee are the property of the employee and may not be shared with the employer. It eliminates the provision that makes tip splitting voluntary and also eliminates the provision that tips automatically included in a customer's bill or charged to a customer's credit card must be given to the service employee. It also eliminates the requirement that the employer pay the service employee by the next regular payday for tips charged to a credit card. Text of the bill can be found at http://www.mainelegislature.org/legis/bills/bills_125th/billtexts/SP005701.asp

MASSACHUSETTS
Unfortunately, text for any legislation introduced after January 3rd has not yet been made available online.

HD00121: An Act to Ensure the Integrity of Municipal Tax Rates. Proposed by Angelo J. Puppolo, Jr.

HD00219: An Act to Freeze the Rate and Valuation of Taxes on Real Property. Proposed by Daniel K. Webster.

HD00368: An Act Relative to the Use Tax. Proposed by Jennifer E. Benson.

HD00437: An Act Providing Security to Consumers for Purchases from Certain Vendors. Proposed by Elizabeth Poirier.

HD00486: An Act Relative to Sustainable Water Resources. Proposed by Frank I. Smizik.

HD00542: An Act Relative to the Development and Promulgation of Regulations Governing Underground Storage Tanks. Proposed by John D. Keenan.

HD00627: An Act Relative to the Property Tax Classification of Small Businesses. Proposed by David Paul Linsky.

HD01100: An Act to Protect Main Street Retailers and Promote Sales Tax Fairness in the Commonwealth. Proposed by Martin J. Walsh.

HD01155: An Act to Protect Groundwater Levels. Proposed by Martha Walz.

HD01165: An Act Relative to the Use of HEPA Vacuums. Proposed by William N. Brownsberger

HD01235: An Act to Promote Water Conservation. Proposed by Paul Schmid.

HD01265: An Act Relative to Massachusetts Artists, the Self Employed, Small Businesses and Small Nonprofits. Proposed by John D. Keenan.

HD01303: An Act Relative to Local Sales Tax Assessment. Proposed by William C. Galvin

HD01323: An Act to Repeal the Sales Tax Increase. Proposed by David M. Torrisi.

HD01457: An Act relative to sales tax exemption. Proposed by Vincent A. Pedone

HD01575: An Act Relative to Groundwater Recharge. Proposed by Aaron Michlewitz.

HD01868: An Act Relative to Taxation. Proposed by Geoff Diehl.

HD02208: An Act Relative to Fair Dealing in Business. Proposed by Bradley H. Jones, Jr.

HD02696: An Act Relative to Small Business Tax Relief. Proposed by Lori A. Ehrlich.

HD02795: An Act Relative to the Sales Tax. Proposed by Alice Hanlon Peisch.

HD02869: An Act Relative to the Sales Tax. Proposed by Cory Atkins.

HD03023: An Act Relative to the Sales Tax. Proposed by Bradley H. Jones, Jr.

HD03252: An Act Providing for Property Tax Relief for Small Business Owners. Proposed by Bruce J. Ayers.

HD03351: An Act Relative to Sales Tax Exemption. Proposed by Angelo M. Scaccia.

NEW HAMPSHIRE
There are no new Legislative Service Requests in New Hampshire. However, LSRs previously reported on have finally been introduced. Below is a summary and link for relevant pieces of legislation.

HB 0154: Originally LSR: 2011-H-0162-R – An Act Increasing the Threshold Amounts for Taxation under the Business Enterprise Tax. This bill increases the minimum for taxation under the business enterprise by $50,000 from $150,000 to $200,000. Text of the bill is available at http://www.gencourt.state.nh.us/legislation/2011/HB0154.html

HB 0213: Originally LSR: 2011-H-0611-R – An Act Reducing the Rate of the Business Profit Tax. This bill reduces the business profit tax from 8.5% to 8% for 2011 and then reduces it from 8% to 7.5% for 2012. Full text of the bill, along with a fiscal impact note can be found at http://www.gencourt.state.nh.us/legislation/2011/HB0213.html

HB 0243: Originally LSR: 2011-H-0303-R – An Act Enabling Cities and Towns to Establish A Local Revenue Option. This bill would allow towns to implement an income tax, sales tax or value added tax or other revenue program in lieu of property taxes. Text of the bill can be found at
http://www.gencourt.state.nh.us/legislation/2011/HB0243.html

HB 0255: Originally LSR: 2011-H-0913-R – An Act Requiring Consumer Protection for Prepaid Services. This bill adds failure to provide services for which payment has been made to the unlawful acts under the consumer protection act. Full text can be found at http://www.gencourt.state.nh.us/legislation/2011/HB0255.html

HB 0454: Originally LSR: 2011-H-0244-R – An Act Establishing A Job Creation Credit. This bill creates a tax credit in the amount of $2,500 for each new employee a business with 75 or fewer employees’ hires. Small businesses may apply to the commissioner of the department of resources and economic development for the credit, which will be considered taxes paid under RSA 77-E. Text of the bill can be found at http://www.gencourt.state.nh.us/legislation/2011/HB0454.html

RHODE ISLAND
HB 5041: An Act Relating to Labor and Labor Relations: Employment Security – Return to Work Act. This bill establishes training programs and internships that workers may take part in while still receiving unemployment benefits. In order to participate, employers must apply to the Department of Labor and be willing to offer up to 6 weeks of unpaid work and training for a potential employee. The program seeks to help employees get a “foot in the door” by providing them with new skills and encourage employers to hire more employees by deferring the cost of employment. Full text can be found at http://www.rilin.state.ri.us/BillText11/HouseText11/H5041.pdf

HB 5043: An Act Relating to State Affairs and Government – Control of Illegal Immigration. This bill requires that the Executive Department and all contractors and subcontractors doing business with the state use the federal governments E-Verify program to ensure that all employees are eligible to work in the United States. Text of the bill can be found at http://www.rilin.state.ri.us/BillText11/HouseText11/H5043.pdf

HB 5046: An Act Relating To Furnishing the City of Providence with a Supply of Pure Water. The act would further the Pawtuxet River Authority’s mission to remove the Pawtuxet Village Dam. Text of the proposed bill is available at http://www.rilin.state.ri.us/BillText11/HouseText11/H5046.pdf

HB 5055: An Act Relating to State Affairs and Government. This bill would intensify the reporting requirements for individuals and businesses currently receiving tax credits from the state. The new requirements include employment information for all employees as well as a summary of jobs retained and other benefits that resulted from the credits. The director of the department of revenue must collect and publish this data in an annual unified economic development report regarding the economic effect of tax credits and benefits. Text of teh bill is available at http://www.rilin.state.ri.us/BillText11/HouseText11/H5055.pdf

HB 5060: An Act Relating to Taxation – Business Corporation Tax. The act would eliminate the minimum corporate tax on small businesses with gross receipts under $250,000 per year and would establish a graduated minimum tax on businesses with annual gross receipts of $250,000 or greater. The highest amount to be paid would be $3,000 by a business with gross receipts of $10,000,000 or more. Text of the bill, including the new proposed minimum rates can be found at http://www.rilin.state.ri.us/BillText11/HouseText11/H5060.pdf
Note that changes to the tax code are shown in Blue.

HB 5100: An Act Relating to Taxation – Franchise Tax. The bill would repeal the state Franchise Tax. Text is available at http://www.rilin.state.ri.us/BillText11/HouseText11/H5100.pdf

HB 5101: An Act Relating to Labor and Labor Relations – Background Checks For Prospective Employees. The bill would require that all background checks go through the BCI system run by the Attorney General’s Office: Bureau of Criminal Identification. A person cannot be considered disqualified for employment because of a criminal record except for specific instances as enumerated in the bill. In the event of such an instance, an employer must notify the applicant and the state with suitable reason why the conviction renders them disqualified for employment. Text of the bill, which includes suitable reasons for denying employment, can be found at http://www.rilin.state.ri.us/BillText11/HouseText11/H5101.pdf

HB 5115: An Act Relating to Taxation – Sales and Use Taxes – Liability and Computation. The act changes the definition of a retailer for sales and use tax purposes. The new definitions can be found at http://www.rilin.state.ri.us/BillText11/HouseText11/H5115.pdf

HB 5150: An Act Relating to Motor Vehicles – Taxation. The bill expands the definition of the owners of motor vehicles for registration and taxation purposes to include partnerships, firms, associations, corporations, limited liability corporations and other legal entities which operate on state roads for more than 30 days. Text can be found at http://www.rilin.state.ri.us/BillText11/HouseText11/H5150.pdf

HB 5153: An Act Relating to Taxation – Business Corporation Tax. This bill reduces the corporate minimum tax to $50. Text is available at: http://www.rilin.state.ri.us/BillText11/HouseText11/H5153.pdf

HB 5167: An Act Relating to Taxation – Business Corporation Tax. This bill reduces the corporate minimum tax to $250. Text is available at http://www.rilin.state.ri.us/BillText11/HouseText11/H5167.pdf

HB 5184: An Act Relating to Labor and Labor Relations – Payment of Wages. The bill would allow employers to pay their employees on a bi-weekly or semi-monthly basis. Text of the bill can be found at http://www.rilin.state.ri.us/BillText11/HouseText11/H5184.pdf

SB 95: An Act Relating to Taxation – Levy and Assessment of Local Taxes. The bill allows municipalities to include interim assessment when calculating their maximum tax levy. Text of the bill is available at http://www.rilin.state.ri.us//BillText11/SenateText11/S0095.pdf

SB 103: An Act Relating to Taxation – Business Corporation Tax and Franchise Tax. This bill repeals both the minimum business corporation tax and the minimum franchise tax. Text of the bill can be found at http://www.rilin.state.ri.us//BillText11/SenateText11/S0103.pdf

VERMONT
HB 94: An Act Relating to the Corporate Minimum Tax. The bill abolishes the corporate minimum tax and also sets forth new tax requirements for digital corporations. Text of the bill can be found at http://www.leg.state.vt.us/docs/2012/bills/Intro/H-094.pdf

URGENT: HB 122: An Act Relating to Implementing the Recommendations of Vermont’s Blue Ribbon Tax Structure. This bill proposes to lower the state sales tax while at the same time expanding its base. Under the provisions of the bill, the sales and use tax will be lowered to 4.5% but this tax will be expanded to include consumer services sold at retail. Full text can be found at http://www.leg.state.vt.us/docs/2012/bills/Intro/H-122.pdf
The bill was introduced January 27 and referred to the Ways and Means Committee.