For months, Democrats have been misleading the people of New Hampshire by saying their plan on business taxes is simply freezing the rates at their current levels. Here are the facts:

The current rate for this tax period is 7.7% for the Business Profits Tax, and .6% for the Business Enterprise Tax. HB517, the budget trailer bill passed in 2017 clearly states these rates for our current period.

156:213  Business Profits Tax; Imposition of Tax; 2019.  RSA 77-A:2 is repealed and reenacted to read as follows: 77-A:2  Imposition of Tax.  A tax is imposed at the rate of 7.7 percent upon the taxable business profits of every business organization.

156:214  Business Enterprise Tax; Imposition of Tax; 2019.  RSA 77-E:2 is repealed and reenacted to read as follows: 77-E:2  Imposition of Tax.  A tax is imposed at the rate of .60 percent upon the taxable enterprise value tax base of every business enterprise.

I.  Sections 213 and 214 of this act shall apply to taxable periods ending on or after December 31, 2019.

The Democrats’ proposal in HB2, the budget trailer bill, calls for the BPT to be 7.9% and the BET to be .675%.

225  Business Profits Tax; Imposition of Tax; 2019.  RSA 77-A:2 is repealed and reenacted to read as follows: 77-A:2  Imposition of Tax.  A tax is imposed at the rate of 7.9 percent upon the taxable business profits of every business organization.

226  Business Enterprise Tax; Imposition of Tax; 2019.  RSA 77-E:2 is repealed and reenacted to read as follows: 77-E:2  Imposition of Tax.  A tax is imposed at the rate of .675 percent upon the taxable enterprise value tax base of every business enterprise.

228  Applicability.  Sections 225 and 226 of this act shall apply to taxable periods ending on or after December 31, 2019.

This is NOT a freeze of the current rate as they allege. This is an outright reversal of our current law, and raises the BET rate by 12.5%!

Businesses are currently paying at the lower 7.7% rate

According to the Department of Revenue Administration, four estimated payments are required, paid at 25% each on the 15th day of the 4th, 6th, 9th and 12th month of the taxable period, for any tax liability greater than $200. In theory, many businesses may have already made estimated payments for the 4th and 6th month. Given the timeline of the continuing resolution, it is possible that they will also make an estimated payment for the 9th month as well.

Democrats’ business tax proposal is retroactive

Businesses have already made two of the four estimated payments for the year. Any increase for the current tax year would also apply to the quarterly periods they’ve already paid for, and require them to make up the difference, after the fact.

Don’t be fooled. This not only a tax increase,
it is a retroactive tax increase.


House Republicans are committed to keeping our promise to New Hampshire’s job creators, and not raising business tax rates at a time where our economy is running full steam ahead.

Can we count on your financial support of $25, $50 or $100 to help us bring this message to voters now and in 2020?