Committee Summary for House Ways and Means (01/21/2025)

Bill/Time	Type	Title	Sponsor
Unclear 00:09:14.600 - 9:06:50 AM	General Working Session	Unclear
HB83 03:43:29.720 - 12:41:05 PM	Public Hearing	increasing the minimum age for sports betting.	Fellows, Sallie(D)[CT]2024
HB163 04:07:17.439 - 1:04:53 PM	Public Hearing	relative to state funds.	Almy, Susan(D)[CT]2024
HB163 04:26:14.560 - 1:23:50 PM	Executive Session	relative to state funds.	Almy, Susan(D)[CT]2024

Unclear: Chris from Legislative Budget Assistance Office (LBA) Information Only00:09:14.600 - 9:06:50 AM; Chris from the LBA provided an overview of the committee's role in estimating unrestricted funds for the general fund, fishing game fund, and highway fund. He emphasized that the committee's task is to estimate revenues based on current law, not potential legislative changes. Chris distributed a packet to the committee, which included staff listings, fiscal notes on bills, and a process for revenue estimation. He explained how the committee's estimates would be used in the operating budget and how adjustments would be made for any legislative changes. He also mentioned the involvement of agencies in providing revenue estimates and the process of finalizing these estimates through legislative resolutions and amendments to House Bill 1.
Unclear: Representative Brier Information Only00:13:10.120 - 9:10:46 AM; Representative Brier, who previously worked at the Department of Safety, was mentioned as an expert on the committee who could provide insights into highway funds due to his experience with road tolls.
Unclear: Representative Aly Information Only00:18:35.679 - 9:16:11 AM; Representative Aly inquired about the timing and involvement of Ways and Means Committee members in a potential Committee of Conference, which would occur in June if needed to reconcile differences between the House and Senate estimates.
Unclear: Lindsay Stapp, Commissioner at Department of Revenue Information Only00:29:59.679 - 9:27:35 AM; Commissioner Lindsay Stapp from the Department of Revenue presented on the taxes collected by the department, including business profits tax, business enterprise tax, and others. She highlighted the department's mission, organizational structure, and the breakdown of tax revenues. Stapp detailed the filing thresholds, payment schedules, and the impact of the Tax Cuts and Jobs Act on state revenues. She explained how business taxes are split between the general fund and the education trust fund and discussed recent changes in tax laws, including the credit carryover cap and changes in apportionment methods. She also addressed questions about the timing of tax filings, the impact of legislative changes on revenue estimates, and the influence of federal tax policies on state revenues.
Unclear: Representative Opal Information Only00:44:32.079 - 9:42:08 AM; Representative Opal asked about the difference between estimated and actual returns and requested clarification on fiscal years versus tax years. Stapp explained the differences and how they affect revenue estimates and tax collections.
Unclear: Representative Elme Information Only00:49:58.319 - 9:47:34 AM; Representative Elme inquired about the impact of the credit carryover cap on refunds and whether there was a change in taxpayer behavior due to this cap. Stapp confirmed the increase in refunds due to the cap and mentioned that it might influence businesses to adjust their estimated payments.
Unclear: Commissioner Information Only01:16:52.199 - 10:14:28 AM; The Commissioner provided an example of how revenue reduction works under the three-factor apportionment system, explaining that it involves payroll, property, and sales in New Hampshire. He highlighted the volatility of sales compared to payroll and property, noting that sales can change rapidly due to new or lost contracts. He also discussed market-based sourcing for service corporations, explaining that taxation is based on the location of the customer, which aligns with equitable and IRS regulations.
Unclear: Representative Ery Information Only01:18:29.920 - 10:16:05 AM; Representative Ery inquired about the taxation of a distributing company in New Hampshire that was taxed twice for the same sales in New Hampshire and Maine. He also asked for an example of how market-based sourcing would apply to a service corporation based in Manchester with offices in Boston and London, emphasizing the taxation based on customer location.
Unclear: Representative Elberger Information Only01:20:19.040 - 10:17:55 AM; Representative Elberger discussed a scenario involving an inherited investment from Florida, questioning how taxes would be applied to services provided to family members in New Hampshire and Georgia. The discussion clarified that taxation would be based on where the services are consumed, not where the company is based.
Unclear: Commissioner Information Only01:22:45.880 - 10:20:21 AM; The Commissioner explained the Meals and Rentals (M&R) tax, detailing that it is an 8.5% tax on meals, rooms, and motor vehicle rentals, collected by operators and remitted to the state. He discussed the 3% commission operators can retain for timely filing and payment, and provided breakdowns of M&R revenue by county and the distribution to cities and towns. He also noted the inability to break down M&R revenue by town due to consolidated filings and privacy concerns.
Unclear: Representative Opel Information Only01:29:46.480 - 10:27:22 AM; Representative Opel sought clarification on whether the M&R tax applies to truck rentals from companies like Ryder, and how consolidated filings affect the ability to break down revenue by town. The Commissioner confirmed the tax applies and explained the complexities of consolidated filings.
Unclear: Representative Spar Information Only01:31:20.600 - 10:28:56 AM; Representative Spar questioned the purpose and commonality of the 3% commission for M&R tax operators, to which the Commissioner responded that it compensates operators for collecting and remitting taxes on behalf of the state, a practice common in other states.
Unclear: Commissioner Information Only01:32:52.520 - 10:30:28 AM; The Commissioner provided details on the tobacco tax, which includes taxes on cigarettes, other tobacco products, and e-cigarettes, and explained the enforcement process for ensuring tax payment on e-cigarettes, particularly those imported from China. He highlighted challenges with contraband products, their destruction, and the potential for testing these products before disposal.
Unclear: Representative Elme Information Only01:39:06.560 - 10:36:42 AM; Representative Elme discussed issues with e-cigarettes, noting a high percentage come from China and may not comply with FDA regulations or be properly taxed. He questioned the feasibility of testing these products before destruction, to which the Commissioner explained the current lack of a mechanism but openness to future solutions.
Unclear: Representative Oing Information Only01:43:38.599 - 10:41:14 AM; Representative Oing inquired about the potential for selling confiscated but salable tobacco products, noting the high cost of destruction. The Commissioner acknowledged the issue but stated that currently, there's no mechanism to sell these products and most are not salable.
Unclear: Representative Op Information Only01:44:30.880 - 10:42:06 AM; Representative Op asked about the consequences for retailers selling untaxed products and whether they could be held responsible for destruction costs. The Commissioner explained existing penalty provisions and the potential need for a balanced approach to address destruction costs.
Unclear: Commissioner Information Only01:50:17.159 - 10:47:53 AM; The Commissioner discussed the impact of other states' bans on menthol cigarettes and flavored e-cigarettes, noting that such bans have led to an increase in revenue from out-of-state purchases in New Hampshire. The Commissioner also addressed a hypothetical increase in cigarette taxes, suggesting it would balance additional revenue against potential reduction in out-of-state purchases. The Commissioner noted New Hampshire's position among states in terms of cigarette taxes and the availability of data on per capita tobacco use, offering to provide a report on cigarette taxes and smuggling by state.
Unclear: Commissioner Information Only01:52:35.320 - 10:50:11 AM; The Commissioner provided an overview of the real estate transfer tax (RETT), explaining its application on the sale and transfer of real property, the tax rate, and its collection process through the Register of Deeds. The Commissioner highlighted the significance of real estate holding company transactions and shared data on the distribution of RETT revenue across counties, particularly noting the high activity in Hillsborough and Rockingham counties. The discussion included a 10-year trend showing significant increases during the pandemic and a subsequent stabilization.
Unclear: Commissioner Information Only01:59:04.239 - 10:56:40 AM; The Commissioner discussed the interest and dividends tax (IND), which has been repealed effective January 1, 2025. The Commissioner outlined the process of notifying taxpayers about the repeal, including the mailing of 90,000 letters and ensuring no 2025 estimated payments are made. The Commissioner provided historical data on IND revenue, noting its composition and the impact of higher interest rates in recent years. The Commissioner mentioned that some revenue would still be collected in fiscal years 2026 and 2027 due to late payments and ongoing audit and collection activities.
Unclear: Commissioner Information Only02:03:44.679 - 11:01:20 AM; The Commissioner explained the communications services tax (CST), which is a 7% tax on two-way communication services. The Commissioner discussed the trend of decreasing CST revenue over the past decade, attributing it to the decline in landline use and the structure of modern cell phone bills, which separate taxable communication services from non-taxable internet access. The Commissioner noted an increase in revenue from VoIP and video conferencing post-pandemic.
Unclear: Commissioner Information Only02:05:22.920 - 11:02:58 AM; The Commissioner discussed the Medicaid enhancement tax (MET) and the nursing facility quality assessment (NFQA), both of which are dedicated funds rather than general fund revenues. The MET is a 5.4% tax on net patient services revenue of hospitals, while the NFQA operates similarly for nursing homes. The Commissioner provided data on the revenue trends of both taxes, noting the impact of an aging population on NFQA and the effect of the COVID-19 pandemic on MET revenue.
Unclear: Commissioner Information Only02:14:55.599 - 11:12:31 AM; The Commissioner discussed the utility property tax (UPT), which is set at $660 per thousand of value. The Commissioner explained how the tax is assessed and paid, and noted that the revenue goes directly into the education trust fund. The Commissioner also addressed the potential impact of pending legislation on UPT, specifically regarding large power generators.
Unclear: Commissioner Information Only02:18:55.398 - 11:16:31 AM; The Commissioner provided information on other taxes administered by the Department of Revenue, including the railroad tax, local property taxes, the gravel tax, and the timber tax. The Commissioner explained the Statewide Education Property Tax (SWEPT) and how it is calculated and retained at the municipal level. The Commissioner also discussed the timing of revenue collection for various taxes, noting the distribution between the first and second halves of the fiscal year.
Unclear: Commissioner Information Only02:25:13.359 - 11:22:49 AM; The Commissioner provided a preview of upcoming revenue estimation processes, explaining how fiscal year 2025 estimates would be calculated and the scenarios considered for growth rates in subsequent years. The Commissioner also discussed the Revenue Information Management System (RIMS), detailing its implementation, benefits, and the revenue uplift it has generated. The Commissioner highlighted the success of RIMS in improving tax collection and compliance.
Unclear: Chris Information Only02:39:13.520 - 11:36:49 AM; Chris provided information on where committee members could access documents and presentations online, noting that all materials would be available on the department's website. Chris also mentioned that the meetings are streamed, allowing members to review presentations at their convenience.
Unclear: Representative Sally Fellows, Plymouth, Ashland, Holderness Support03:39:46.160 - 12:37:22 PM; Representative Sally Fellows introduced HB 83, which aims to increase the minimum age for sports betting from 18 to 21. Fellows argued that young adults, particularly males aged 18-20, are more likely to engage in risky behaviors due to their underdeveloped cognitive abilities. Fellows highlighted the addictive nature of cell phone apps and the ease of 24/7 online betting, which increases the risk of gambling addiction. The bill seeks to allow high school students and recent graduates three more years to mature before engaging in sports betting, potentially reducing gambling addiction.
HB83: Representative Sally Fellows, Plymouth, Ashland, Holderness Information Only03:43:29.720 - 12:41:05 PM; Representative Fellows discussed the differences between charitable gaming betting and sports betting for 18-year-olds. She explained that currently, 18-year-olds can engage in sports betting both in casinos and online. She highlighted that while casinos are not open 24 hours a day, limiting the time spent betting, online betting is accessible around the clock, increasing the potential for addiction.
HB83: Representative Opal Information Only03:44:38.840 - 12:42:14 PM; Representative Opal sought clarification on Representative Fellows' testimony regarding the fiscal impact of 18 to 20-year-olds' sports betting. He pointed out a discrepancy between the total amount wagered and the revenue generated for the state, emphasizing the committee's focus on revenue impacts. He was concerned about potential confusion over the figures presented, which showed that the actual revenue impact to the state was less than $640,000, contrary to the larger figures mentioned for total bets placed.
HB83: Representative Sod Information Only03:49:33.560 - 12:47:09 PM; Representative Sod inquired about the comparative performance of teenagers versus other age groups in sports betting. Representative Fellows responded with an anecdote suggesting that teenagers tend to perform poorly due to overconfidence and lack of experience. A follow-up question about lowering the voting age to 16 was posed, to which Representative Fellows expressed uncertainty about her stance.
HB83: Marlene Warner, CEO of the Massachusetts Council on Gaming and Health Support03:51:52.720 - 12:49:28 PM; Marlene Warner, representing the Massachusetts Council on Gaming and Health, supported raising the gambling age for sports betting to 21. She explained the 'gray space' nature of most gambling issues but emphasized that youth gambling is a clear issue where the less mature brain is not suited for the risks involved. She cited no research supporting younger brains' suitability for gambling and noted the negative impacts observed in states where sports betting is legal. She shared personal concerns as a mother about the ease with which her teenage sons could cross into New Hampshire to gamble.
HB83: Janine Rero, Chief Marketing Officer for the Massachusetts Council on Gaming and Health, Auburn, NH Support03:58:07.159 - 12:55:43 PM; Janine Rero supported the bill to raise the gambling age from 18 to 21. From her experience as a former marketing director for a casino, she noted that 18 to 21-year-olds are not a significant market segment for operators due to their limited wallet size and inability to fully engage with casino amenities. She highlighted the increased risk of gambling addiction for younger individuals.
HB83: Katie Leulier, Marketing Coordinator with the Mass Council of Gaming and Health, New Hampshire Support04:00:06.399 - 12:57:42 PM; Katie Leulier, a lifelong resident of New Hampshire, expressed support for the bill to increase the age to gamble on sports wagering to 21. She did not provide additional detailed testimony beyond her support for the bill.
HB83: Charlie McIntyre, Director of the New Hampshire Lottery Information Only04:01:15.800 - 12:58:51 PM; Charlie McIntyre, Director of the New Hampshire Lottery, explained that the Lottery does not take a position on the policy decision regarding the age range of 18 to 21 for gambling as outlined in the bill. He mentioned that the fiscal note reflects the potential impact on state revenue, estimating a loss of $600,000 in net revenue from bettors aged 18 to 20. McIntyre discussed the technological feasibility of age verification online and the challenges of doing so in person due to the large number of retail locations selling lottery tickets. He also touched on the payment methods accepted for gambling, stating that credit cards are not used due to policy but debit cards and cash are accepted. Additionally, he addressed questions about the possibility of making the bill revenue neutral and the effectiveness of the state's current contract with DraftKings. He concluded by explaining the geo-fencing restrictions that limit sports betting to within New Hampshire's borders.
HB163: Representative Elme Support04:07:17.439 - 1:04:53 PM; Representative Elme introduced HB163, which aims to reorganize and update the list of dedicated funds in RSA 612. He detailed the work done with the Treasurer and Controller to address long-standing issues, including identifying inactive funds, adding trusts and endowments, and clarifying the responsibilities of state agencies regarding these funds. Elme emphasized the importance of the Dedicated Funds Committee in reviewing these funds every five years to ensure they are managed appropriately. He also discussed the differences between various types of funds and trusts and how the bill aims to clarify these distinctions. He noted that the bill does not introduce any policy changes but is a housekeeping measure to streamline processes.
HB163: Representative from Greenland Information Only04:15:33.960 - 1:13:09 PM; A representative from Greenland, who also serves as a Trustee of Trust Funds, asked about the implications of the bill on trust funds, specifically whether it would allow moving trust funds without a probate or non-judicial settlement. Representative Elme responded by explaining the process for trust funds, which involves review by the Attorney General's office, and provided examples of how trust funds have been handled in the past, such as with small trusts set up for Keene State College and Plymouth State University.
HB163: Representative Om Information Only04:17:54.000 - 1:15:30 PM; Representative Om inquired whether HB163 introduces any policy changes, to which Representative Elme confirmed that it does not, describing it as a streamlining of processes. Elme further elaborated on the role of the Dedicated Funds Committee in reviewing funds to prevent them from becoming dangerously low or excessively high, and to suggest adjustments as needed.
HB163: Representative Shamber Information Only04:19:48.640 - 1:17:24 PM; Representative Shamber asked about a specific change in the bill that shifts the reporting deadline for fund administrators from September to October 15th. Representative Elme explained that this change was suggested by the Comptroller to give administrators more time to finalize reports before the November 15th deadline, and it was intended to align with the digital reporting process.
HB163: Representative Aly Support04:26:14.560 - 1:23:50 PM; Representative Aly moved to recommend that HB163 ought to pass (OTP). The motion was seconded by Representative Ol, and there was no further discussion before the vote was taken.
HB163: Clerk Information Only04:27:25.199 - 1:25:01 PM; The Clerk conducted the roll call vote on HB163, which resulted in a unanimous decision to pass the bill with 15 members in favor, none opposed, and 5 members absent. The bill was then placed on the consent calendar.
HB163: Chairman Information Only04:29:50.640 - 1:27:26 PM; The Chairman explained the process of the consent calendar and confirmed that HB163 would be placed on it, noting that it would automatically pass unless 10 representatives requested its removal. He also discussed the upcoming schedule for the next week, mentioning agency presentations and other business.

Janigian, John(Chairman)(R)[B+]2024	Ohm, Bill(Clerk)(R)[B]2018	Ulery, Jordan(V Chairman)(R)[A-]2024
Almy, Susan(D)[CT]2024	Oppel, Thomas(D)	Smith, Steven(R)[B+]2024
Malloy, Dennis(D)[CT]2024	Schamberg, Thomas(D)[CT]2024	Doucette, Fred(R)[A-]2024
Southworth, Thomas(D)[CT]2024	Tierney, James(R)[B-]2024	Aures, Cyril(R)[A]2024
Bolton, Bill(D)[CT]2024	Elberger, Susan(D)[D-]2024	Smith, Geoffrey(D)[D-]2024
Soti, Julius(R)[A+]2024	Spahr, Terry(D)	Bryer, Scott(R)
Murphy, Mary(R)	Ford, Mary(R)