Calling on Hassan to Get DRA Under Control Regarding BET Tax Issue
On Tuesday, the Senate Ways and Means Committee will hear an amendment (2013-1604S), which will prevent the Department of Revenue Administration (DRA) from applying the Business Enterprise Tax (BET) to gratuitous tips collected by employees. The DRA has recently decided to interpret the 2008 amended Rev 2402.01 to include tips as wages and applying the BET to these amounts. This change in interpretation of the rule is now compelling business owners to pay BET on tips. Citizens for a Strong New Hampshire supports the amendment which clarifies that only compensation paid by the business enterprise will be subject to the BET.
Kristin Beaulieu, Director for Citizens for a Strong New Hampshire, made the following statement:
"While we applaud and support the amendment, it is unfortunate that it's even needed. New Hampshire small businesses readying for the tourism season will be hit the hardest if this amendment does not pass.
At a time when businesses like those in the restaurant and lodging industry are already struggling due to the upcoming burdens of Obamacare, the DRA is incorrectly implementing a whole new tax increase on the backs of these very same small businesses. Governor Hassan needs to immediately take control of this situation and call for the DRA to back off their reckless and financially devastating interpretation of the 2008 rule (Rev 2402.01)."