Business Taxes

Business Taxes are comprised of the Business Profits Tax (BPT) and the Business Enterprise Tax (BET).

Business Profits Tax
RSA Chapter 77-A

The Business Profits Tax (BPT) has historically been one of the largest sources of general fund revenue.  Enacted in 1970 as a replacement for the municipal property tax on stock-in-trade, farm livestock, poultry, fuel pumps, mills and machinery, the initial rate was established at 6%. The rate steadily increased to a high of 9.56% in FY 1983. The rate then decreased to 7% beginning FY 1995, then increased to 8% for tax years ending on or after 7/1/99. The current rate of 8.5% was effective for all returns and taxes due on account of taxable periods ending on or after July 1, 2001. This tax is assessed on income from conducting business activity within the state.  For multi-state businesses, income is apportioned using a weighted sales factor of 2 and the standard payroll and property factors. Organizations operating a unitary business must use combined reporting in filing their NH return. Four annual estimate payments are required on liabilities greater than $200, paid at 25% each. Proprietorship, partnership and fiduciary returns are due on April 15th or the 15th day of the 4th month following the end of the taxable year.  Corporate returns are due on March 15th or the 15th day of the 3rd month following the end of the taxable year. Organizations with $50,000 or less of gross receipts from all their activities are not required to file a return.

Business Enterprise Tax
RSA Chapter 77-E

In 1993, a 0.25% (.0025) tax was enacted on taxable enterprise value tax base, which is the sum of all compensation paid or accrued, interest paid or accrued, and dividends paid by the business enterprise after special adjustments and apportionment. Chapter 17, Laws of 1999 increased the rate from 0.25% to 0.5%. The rate was increased to 0.75% in 2001.  Also, the filing threshold increased to $150,000 of gross business receipts or $75,000 of the enterprise value tax base.  Four annual estimate payments are required on liabilities greater than $200, paid at 25% each on the 15th day of the 4th, 6th, 9th and 12th months of the taxable year. The Business Enterprise Tax return is due at the same time the Business Profits Tax return is due. 

Most recent tax rate changes to Business taxes:

	BPT		BET
Effective for tax years ending	Change	To Rate	Change	To Rate
July 1, 1999	1%	8%	.25%	.50%
July 1, 2001*	.5% *	8.5%	.50% *	.75%