In response to the Supreme Court’s decision in the case of South Dakota v. Wayfair, New Hampshire Governor Chris Sununu called on Council board members to consider legislation that would protect businesses from what New Hampshire considers improper attempts by other states to force sales and use tax collection.
The plan would enact the following changes:
Any out-of-state taxing authority must notify the New Hampshire Department of Justice before auditing or imposing tax collection obligations on a New Hampshire business.
The taxing authority must receive a written determination from the New Hampshire Department of Justice that they meet certain protections and requirements.
Protections and requirements will include a prohibition against retroactive enforcement, a safe harbor for small businesses and certain amounts of sales, and others. The out-of-state taxing authority will have to show its laws don’t impose an unconstitutional burden on New Hampshire businesses.
The New Hampshire Department of Justice can file an expedited suit to block any tax collection obligations that violate this new law.
A special legislative session was called on July 25 to consider SB 1. The Bill was passed unanimously by the Senate but was blocked by the House due to concerns about constitutionality and a desire to establish a special commission that would study the issue and make a report by July 1, 2019.