New Hampshire nonprofits no longer fear proposed business enterprise taxes
New Hampshire nonprofits can breath a little easier now that the legislature has officially rejected a proposed bill that would have required the state’s largest nonprofit organizations to pay business enterprise taxes. The legislation would have “required nonprofits that earn more than $2 million in fees for service annually to pay the tax that is currently paid by businesses in the state with more than $150,000 in gross receipts.”
Currently, the business enterprise tax in New Hampshire is at 0.75%, but the bill would have “reduced that to 0.68% by including hospitals, universities, and other large nonprofits.”
David Hess (R-Hookset), the person who first introduced the bill, explained the bill targeted organizations “which receive a substantial amount of their revenue from ‘program service revenue.’” However, critics of the bill argued it would “put fragile nonprofits at too much risk” and it would “open the door to taxing nonprofits for earned revenue.”
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