Changes to New Hampshire’s Interest and Dividends Tax Law

Last month, New Hampshire signed HB 02 into law. Among the legislative changes made as a result of the bill's passing was a modification to the Interest and Dividends Tax law. Previously, partners and LLC members were not taxed on their distributions from Limited Liability Companies, Partnerships, and Associations. Effective with tax years beginning on or after January 1, 2009, these distributions may be taxable. This tax applies to NH individual residents only. New Hampshire legislators feel that this change in law will close a loophole in the Interest and Dividends tax law as it will bring partners and LLC members on par with shareholders of corporations, who have long been taxed on dividends from their companies.

In addition to the interest and dividends tax, this bill made changes to the state's hotel tax, tobacco tax, and gambling winnings tax.

Please contact Feeley & Driscoll by Email or call 1 (888) 875-9770 to explore ways to grow your business.

related links