CONCORD, N.H. (AP) - A New Hampshire lawmaker wants to expand a business tax to cover nonprofit hospitals, colleges and other groups that charge for their services.
Rep. David Hess, a Hooksett Republican, proposes expanding the state’s business enterprise tax on wages, interest on debt and dividends to include large nonprofits. Hess said Monday his bill exempts churches and other religious institutions, but not religious hospitals or colleges whose primary mission is to provide a service for a fee. He also would exempt foundations, most volunteer service organizations and smaller charities.
He said the nonprofits would have to take in more than $2 million in revenues annually for the services they provide to be liable for the tax.
The bill proposes to reduce the tax rate from 0.75 percent to 0.68 percent. Hess said the tax income would be about the same, but paid by more taxpayers.
“Many of these institutions are big businesses and run like big businesses,” he said.
Hess said he would like the bill to pass this year, but lawmakers may need several legislative sessions to decide to amend the tax code to cover nonprofits. Hess said he knows nonprofits will oppose the bill, but he wanted to start a discussion about whether they are shouldering a fair share of the costs for the same government services for-profit entities receive.
He estimated his bill would affect roughly 200 of the 10,000 nonprofits currently exempt from the tax that report their income and expenses to the attorney general’s office.
A hearing is scheduled on the bill Tuesday afternoon.
John Clayton of the New Hampshire Hospital Association said the association would be testifying against the bill.
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