FOR IMMEDIATE RELEASE
Contact: Adrienne Rupp
Business and Industry Association
Office: 603.224.5388 x114
Mobile: 603.731.7754
arupp@nhbia.org
BIA urges fast-track repeal of I&D tax extension
CONCORD, N.H. – Jan. 6, 2010 – In a letter to legislative leaders today, the Business and Industry Association – New Hampshire’s statewide chamber of commerce and leading business advocate – called for fast-track repeal of the extension of the 5 percent interest and dividends tax on distributions from LLCs and partnerships.
“The debate over this tax expansion has shifted in recent weeks from a public policy discussion to a political and rhetorical football,” said BIA President Jim Roche. “The absence of input from anyone – let alone small businesses most affected by this provision – when the tax extension was added to the state budget in June has led to too much distrust, confusion, frustration and misunderstanding.”
“Fundamental review and fairness was omitted in the passage of this tax,” Roche continued. “Those who would be affected by the extension of the 5 percent interest and dividends tax on LLC and partnership distributions should have had the opportunity to speak to legislators in an open, public hearing process. They did not and that is not the New Hampshire way.”
The BIA was one of only two groups (the other being the New Hampshire Society of Certified Public Accountants) to raise a red flag over this tax expansion when it was introduced late at night last June. And the BIA was the most vocal and assertive business group to seek clarity from New Hampshire Department of Revenue Administration Commissioner Kevin Clougherty about the fairness and efficacy of the tax extension.
“We’re disappointed the DRA has, to date, not incorporated some of our key recommendations for meeting the dual objectives of fairness and efficacy,” said Roche. “A fast-track repeal of this tax is needed to restore trust in the legislative process and calm small business fears surrounding this matter. If the Legislature or DRA want to propose the same or similar tax going forward, it should be done following appropriate legislative procedures, which include full public hearings in the bright light of day.”