Health & Fitness
AFP Supports Senate Amendment to Block Business Tax Increase by DRA on Restaurants
AFP-NH announced its support for a Senate amendment that would block the DRA from applying the Business Enterprise Tax (BET) to tips collected by servers at state restaurants and food establishments.
MANCHESTER – Americans for Prosperity – New Hampshire (AFP-NH) today announced its support for a Senate amendment (2013-1604s) that would block the Department of Revenue Administration (DRA) from applying the Business Enterprise Tax (BET) to tips collected by servers at state restaurants and food establishments. Recently, DRA notified restaurants owners that the agency was now interpreting a 2008 rule (Rev 2402.01) to force business owner to pay BET on tips. A hearing on the non-germane amendment to HB 520 will be held tomorrow before the Senate Ways and Means Committee.
“This stunning and new interpretation of a five year old regulation represents a major new tax increase on the backs of many New Hampshire small businesses,” said Greg Moore, AFP-NH State Director. “This is exactly the same type of overreach we saw with the LLC tax three years ago, and demonstrates the insatiable appetite of the DRA to find new ways to add to the burden of the employers that state government should be trying to help. We commend Senators Odell and Bradley for filing this common sense amendment to block this outrageous tax hike, and hope that they take a similar view to all the business tax hikes that are included in the House budget.”
AFP-NH noted that the move by DRA comes at a particularly difficult time for many in the restaurant and lodging industry, as these businesses prepare for the implementation of the national health reform law.
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“At a time when our restaurant and lodging industry, a critical component of New Hampshire’s economy, is struggling to deal with the crippling impact of ObamaCare, the last thing they need is a significant tax increase,” added Moore. “It is also a terrible blow to many of the servers who could see their wages reduced to cover this new tax, at a time when a number of them are already seeing their hours cut to avoid the ObamaCare tax penalties. This is a spectacularly poor decision by DRA and AFP-NH urges Governor Hassan to join us in calling for an end to this tax hike on small business.”
