New Hampshire’s tax structure is unique in that it does not impose a broad-based income tax on individuals or a general sales tax. Instead, it relies on specific taxes, primarily on business profits and interest and dividends. The Business Profits Tax (BPT) is levied on the net income of businesses operating in New Hampshire. The Business Enterprise Tax (BET) is levied on the enterprise value tax base, which includes tangible and intangible property, payroll, and rents paid. For a business to be subject to the BET, it must meet certain thresholds related to its gross business income. Specifically, a business is subject to the BET if its gross business income for the taxable period exceeds \$100,000. The BET is calculated as 0.375% of the enterprise value tax base. The BPT is calculated as 7.7% of the gross business profits. The question asks which tax applies if a business has gross business income of \$150,000 and an enterprise value tax base of \$500,000. Since the gross business income of \$150,000 exceeds the \$100,000 threshold, the business is subject to the Business Enterprise Tax. The Business Profits Tax would apply if the business had taxable business profits. Without information on taxable profits, we focus on the applicability of the BET based on gross income. The core concept here is understanding the threshold for the Business Enterprise Tax in New Hampshire. The threshold is a critical determinant of liability for this tax. The BPT is a separate tax on profits, not gross income, and its applicability is not directly triggered by the gross income figure alone in this context. Therefore, the Business Enterprise Tax is the applicable tax based on the provided gross business income exceeding the statutory threshold.

New Hampshire’s tax structure is unique among U.S. states, notably lacking a general sales tax or an income tax on wages. Instead, it relies on specific business taxes and property taxes. The Business Profits Tax (BPT) is levied on the income of businesses operating within New Hampshire. The Business Enterprise Tax (BET) is imposed on the gross receipts of businesses, with certain deductions allowed. The question revolves around the interrelationship and application of these two taxes, particularly concerning the tax base and the specific entities subject to each. Understanding the distinction between taxing profits (BPT) and taxing enterprise value (BET) is crucial. The BET applies to entities engaged in business within New Hampshire, encompassing a broader range of activities than just profit generation. The statutory framework, specifically RSA 77-E, defines “enterprise” for BET purposes, which includes tangible and intangible property used in the business. When a business operates solely within New Hampshire and is structured as a sole proprietorship or partnership, the BPT is applied to the net business profits. The BET, however, is calculated on the enterprise value base, which is the sum of certain tangible and intangible assets used in the business, less certain liabilities. For a business like the hypothetical “Granite State Gadgetry,” which manufactures and sells its products exclusively within New Hampshire, both taxes could potentially apply depending on its structure and activities. The BET is calculated on the sum of the cost of tangible property and the cost of intangible property used in the business, less specified liabilities. The BPT is on net taxable business profits. The scenario presented requires discerning which tax is primarily applicable to the *value of assets* used in the business, which is the core of the BET. The BET is designed to capture value generated from the use of property and services within the state, irrespective of the ultimate profit margin. Therefore, the tax on the value of assets used in the business is the Business Enterprise Tax.

New Hampshire levies a Business Profits Tax (BPT) and a Business Enterprise Tax (BET). The BPT is imposed on the net income of a business, while the BET is imposed on the value of the business enterprise, which includes tangible and intangible property, and compensation paid. For a business to be subject to the BET, it must meet certain thresholds related to its gross receipts and the value of its business enterprise. Specifically, a business is subject to the BET if its gross receipts within New Hampshire exceed \$100,000, or if the value of its business enterprise within New Hampshire exceeds \$100,000. The BET is calculated on the excess of the value of the business enterprise over \$100,000. The tax rate for the BET is 0.675% (or 0.00675). Consider a New Hampshire business, “Granite State Innovations,” which has a total business enterprise value of \$2,500,000. Of this total, \$1,800,000 is attributable to business activities within New Hampshire. The business’s gross receipts within New Hampshire for the tax period were \$150,000. To determine if Granite State Innovations is subject to the BET, we compare its gross receipts and business enterprise value within New Hampshire to the \$100,000 thresholds. Since the gross receipts within New Hampshire (\$150,000) exceed \$100,000, and the business enterprise value within New Hampshire (\$1,800,000) also exceeds \$100,000, the business is subject to the BET. The BET is calculated on the excess of the New Hampshire business enterprise value over \$100,000. Taxable base for BET = New Hampshire Business Enterprise Value – \$100,000 Taxable base for BET = \$1,800,000 – \$100,000 = \$1,700,000 The BET liability is calculated by applying the tax rate to the taxable base. BET Liability = Taxable base for BET * BET Tax Rate BET Liability = \$1,700,000 * 0.00675 BET Liability = \$11,475 Therefore, the Business Enterprise Tax liability for Granite State Innovations is \$11,475. This calculation demonstrates the application of the BET thresholds and tax calculation based on New Hampshire tax law. The core principle is that if either gross receipts or the value of the business enterprise within the state surpasses the specified threshold, the business is liable for the BET on the excess enterprise value.

New Hampshire does not impose a general sales tax or a state-level income tax on individuals. However, it does levy taxes on specific types of transactions and activities. The Business Profits Tax (BPT) is a tax on the business profits of corporations, partnerships, trusts, and other entities operating within New Hampshire. The Business Enterprise Tax (BET) is a tax on the enterprise value base of businesses, which is a measure of a business’s presence and activity in the state. The BET is applied to businesses that are subject to the BPT or that have gross receipts in New Hampshire. The BET is calculated on the sum of compensation paid, purchased tangible property, and leased property. For a business operating solely within New Hampshire, the enterprise value base is generally determined by the total compensation paid, total purchased tangible property, and total leased property. New Hampshire Revised Statutes Annotated (RSA) 77-A outlines the provisions for both the BPT and BET. The BET is intended to capture tax revenue from businesses that may have minimal profits but significant economic activity in the state. The BET rate is applied to the calculated enterprise value base. The question asks about the tax levied on businesses with significant economic activity but potentially low profits in New Hampshire. This scenario directly aligns with the purpose and application of the Business Enterprise Tax. The BET is designed to tax the economic footprint of a business in the state, irrespective of its profitability, by considering factors like compensation, tangible property, and leased property.

New Hampshire’s tax structure is unique in that it does not impose a general sales tax or a broad-based income tax on individuals. Instead, it relies on specific business taxes and taxes on certain types of transactions. The Business Profits Tax (BPT) is levied on the net income of businesses operating within New Hampshire. The Business Enterprise Tax (BET) is imposed on the privilege of doing business in the state, measured by the enterprise value tax base, which includes certain tangible and intangible property. For a business to be subject to these taxes, it must have a sufficient nexus with New Hampshire. Nexus refers to the sufficient connection or link that a business has with a state, which allows that state to impose its taxes. This connection can be established through physical presence, such as having an office or employees in the state, or through economic presence, which is increasingly recognized through activities like soliciting sales or deriving revenue from the state. The specific thresholds and activities that constitute nexus are defined by New Hampshire law and administrative rules. Understanding these nexus requirements is crucial for businesses to determine their tax obligations in New Hampshire. A business that merely has a website accessible by New Hampshire residents, without any other direct engagement or benefit derived from the state, would generally not establish nexus. However, if that business actively solicits business from New Hampshire residents through advertising or direct outreach, or has agents or employees present in the state, nexus would likely be established. The Department of Revenue Administration in New Hampshire provides guidance on these matters, and the interpretation of nexus often evolves with case law and legislative changes.

New Hampshire’s tax structure is unique in that it does not impose a broad-based income tax or a general sales tax. Instead, it relies on specific taxes that target certain economic activities. The Business Profits Tax (BPT) is levied on the net income of businesses operating within New Hampshire. The Business Enterprise Tax (BET) is a tax on the business’s gross receipts and other enumerated business expenses, essentially a tax on the privilege of doing business in the state. A key distinction for advanced understanding lies in how these taxes interact with federal tax principles and the specific exemptions and credits available under New Hampshire law. For instance, certain types of business entities or specific business activities might be exempt from one or both taxes. The BPT is calculated based on federal taxable income, with modifications prescribed by New Hampshire law. The BET, on the other hand, is a separate calculation not directly tied to federal taxable income in the same way as the BPT. Understanding the nexus requirements for both taxes is crucial; a business must have a sufficient connection to New Hampshire to be subject to these taxes. The question probes the understanding of which of these taxes would apply to a specific business activity that generates revenue but has minimal deductible business expenses, making the BET a more pertinent consideration than the BPT in such a scenario. The BET is designed to capture revenue from businesses that may have low profits but significant gross receipts or other taxable enterprise value.

New Hampshire does not impose a general sales tax on tangible personal property or services. However, it does levy specific excise taxes on certain goods and activities. The Business Profits Tax (BPT) is a tax on the net income of businesses operating in New Hampshire. The Business Enterprise Tax (BET) is a tax on the enterprise value base of businesses, which includes wages, rents, and interest paid. For a business to be subject to either the BPT or the BET, it must meet certain thresholds. Specifically, a business is subject to the BPT if its gross business receipts in New Hampshire exceed $100,000. A business is subject to the BET if its total compensation plus gross receipts in New Hampshire exceed $250,000. If a business exceeds both thresholds, it is subject to both taxes. The question asks about a business that exclusively sells services and has gross service receipts of $300,000 in New Hampshire. Since New Hampshire does not tax services under its general sales tax, and the question specifies only services are sold, the relevant taxes to consider are the BPT and BET. The gross business receipts threshold for the BPT is $100,000. The business has $300,000 in gross service receipts, exceeding this threshold. Therefore, the business is subject to the Business Profits Tax. The BET threshold is based on total compensation plus gross receipts. Without information on total compensation, we cannot definitively determine BET liability. However, the question specifically asks about liability related to gross service receipts. The BPT is directly triggered by gross business receipts exceeding $100,000. Thus, the business is liable for the Business Profits Tax.

New Hampshire’s tax structure is unique in that it does not impose a broad-based income tax or a general sales tax. Instead, it relies on specific taxes, primarily the Business Profits Tax (BPT) and the Business Enterprise Tax (BET). The BPT is levied on the profits of businesses operating within New Hampshire, with a current rate of 7.7%. The BET, on the other hand, is a tax on the gross receipts of businesses, less certain allowable deductions, with a rate of 0.675%. A crucial aspect for businesses is understanding which tax applies and how to manage their tax liabilities effectively. The BPT is generally applicable to businesses that derive income from services or other activities not primarily based on tangible property or capital investment. The BET is designed to capture revenue from businesses with significant tangible property or capital investment, even if their profits are low. For a business to be subject to both taxes, it must meet the criteria for each. This means the business must have profits subject to the BPT and also engage in activities that trigger the BET. The threshold for the BET is based on the value of the business’s enterprise, which includes tangible property, payroll, and other forms of capital. The BPT is levied on net income. When considering a business’s tax obligations, it is essential to differentiate between these two taxes and their respective bases. A business might be subject to the BPT on its net profits and, if it meets the BET thresholds, also be subject to the BET on its enterprise value. The determination of which tax is primary or if both apply is based on the nature of the business’s operations and its financial structure. The question focuses on a business that is profitable and also has significant tangible property, thus potentially falling under both tax regimes.

New Hampshire, unlike many other U.S. states, does not impose a general income tax or a sales tax. Its primary revenue sources are business taxes, property taxes, and specific excise taxes. The Business Profits Tax (BPT) is levied on the net income of businesses operating within New Hampshire. The Business Enterprise Tax (BET) is a broader tax, applying to the gross receipts of businesses, with deductions for certain expenses. The question probes the understanding of which of these taxes applies to a specific business structure and activity. A sole proprietorship in New Hampshire, when engaging in the sale of tangible personal property, is primarily subject to the Business Enterprise Tax (BET) on its gross business receipts, provided it meets the thresholds for taxation. The Business Profits Tax (BPT) applies to net income, which is not the focus of the transaction described. The Business Profits Tax (BPT) is levied on the net income of a business entity, not directly on the gross receipts from sales of tangible personal property. The Business Enterprise Tax (BET) is levied on the privilege of engaging in business in New Hampshire and is based on the value of the business enterprise, which is measured by gross receipts less certain deductions. Therefore, for a sole proprietorship engaged in selling tangible personal property, the BET is the relevant tax on the gross receipts from those sales, assuming the business meets the applicable thresholds. The Meals and Rooms Tax applies to prepared food and lodging, which is not the activity described. The estate tax, if applicable, is on the transfer of property upon death, also not relevant here.

New Hampshire’s tax structure is characterized by the absence of a general sales tax and a broad-based income tax on wages and salaries. Instead, it relies on specific taxes, including the Business Profits Tax (BPT) and the Business Enterprise Tax (BET). The BPT is levied on the net income of businesses operating within New Hampshire. The BET, on the other hand, is a tax on the gross receipts of businesses, less certain business deductions. The question revolves around the application of these taxes to a specific business scenario. A manufacturing company, “Granite State Machining,” based in Manchester, New Hampshire, has generated \( \$5,000,000 \) in gross receipts. Of this, \( \$3,000,000 \) is attributable to manufacturing activities conducted within the state, and \( \$2,000,000 \) is from sales to customers located outside of New Hampshire, with the shipping occurring from within the state. The company incurred \( \$1,000,000 \) in deductible business expenses related to its overall operations. The Business Enterprise Tax (BET) in New Hampshire is calculated on the “taxable enterprise value base,” which is the sum of the compensation paid by the business and the value of the tangible and intangible property owned by the business. For a manufacturing company, the BET is levied on the portion of the enterprise value attributable to business activities within New Hampshire. The BET rate is \( 0.75\% \) on the enterprise value. The question asks to identify the correct tax liability for Granite State Machining under the Business Enterprise Tax, assuming the company’s total enterprise value (compensation and property) attributable to its New Hampshire operations is \( \$2,000,000 \). The calculation for the BET liability is \( \text{BET Liability} = \text{Taxable Enterprise Value Base} \times \text{BET Rate} \). In this case, the taxable enterprise value base for New Hampshire operations is \( \$2,000,000 \), and the BET rate is \( 0.75\% \). Therefore, the BET liability is \( \$2,000,000 \times 0.0075 = \$15,000 \). This tax is levied on the enterprise value, not directly on gross receipts in the manner a sales tax would be. The distinction between manufacturing and non-manufacturing sales, and the location of customers, are relevant for apportionment purposes under the Business Profits Tax, but for the Business Enterprise Tax, the focus is on the enterprise value base and its connection to New Hampshire business activities.

New Hampshire’s Business Profits Tax (BPT) applies to gross business profits derived from business activities within the state. A key aspect of determining taxability is understanding what constitutes “business activity” within New Hampshire. Generally, for a business to be considered engaged in business activities in New Hampshire, it must have a physical presence or sufficient economic nexus within the state. Physical presence can include having an office, warehouse, or employees working in New Hampshire. Economic nexus, as established by various state laws and court decisions, can be triggered by substantial economic activity within the state, even without a physical presence. For example, significant sales into New Hampshire or deriving substantial income from sources within the state can create nexus. When a business is structured as a partnership or an S-corporation, the BPT is generally levied at the entity level, not on the individual partners or shareholders. However, the BPT is a net profits tax, meaning it is levied on the profits remaining after allowable deductions. The tax rate is a flat percentage applied to the taxable business profits. The determination of whether a business activity is “within New Hampshire” is crucial for establishing tax liability. This involves examining the location where the business’s income-generating activities occur. For service providers, this often means where the services are performed or where the benefit of the service is received. For tangible property, it typically means where the property is located. The state’s tax regulations provide detailed guidance on what activities create a taxable presence.

New Hampshire’s Business Profits Tax (BPT) is levied on the net income of businesses operating within the state. A key aspect of this tax is the apportionment of income for businesses that operate both inside and outside of New Hampshire. The state utilizes a three-factor apportionment formula, which includes the property factor, the payroll factor, and the sales factor. Each factor is calculated as the ratio of the business’s in-state activity to its total activity. The sum of these three factors is then divided by three to arrive at the apportionment percentage. This percentage is applied to the business’s total net income to determine the portion subject to New Hampshire BPT. For a business with total net income of $500,000, with $200,000 attributable to New Hampshire based on the apportionment formula, the tax liability would be calculated on the $200,000. The tax rate in New Hampshire for the BPT is currently 7.7%. Therefore, the tax liability is $200,000 * 0.077 = $15,400. This question focuses on the application of the apportionment principle rather than a specific calculation of the apportionment factors themselves. It tests the understanding that only income reasonably attributable to New Hampshire operations, as determined by the apportionment formula, is subject to the BPT, irrespective of the business’s total income or the specific rates used in calculating the apportionment factors. The core concept is the distinction between total net income and apportioned net income for tax purposes in New Hampshire.

New Hampshire does not impose a general sales tax or an individual income tax on wages and salaries. However, it does levy a Business Profits Tax (BPT) and a Business Enterprise Tax (BET). The BPT is levied on the profits of businesses operating within New Hampshire. The BET is levied on the total compensation paid to employees and certain other business expenses, regardless of profitability. The question asks about a business entity that would be subject to taxation in New Hampshire. A limited liability company (LLC) is a business structure that can be taxed in various ways. By default, an LLC with more than one member is treated as a partnership for federal tax purposes. A partnership is a pass-through entity, meaning its income and losses are reported on the personal income tax returns of its partners. New Hampshire does not tax individual income from wages and salaries. Therefore, if an LLC is structured and taxed as a partnership, and its sole activity is providing services within New Hampshire, the income flowing through to its members would not be subject to New Hampshire income tax. However, the business itself, if it derives income from New Hampshire, would be subject to either the BPT or the BET. The scenario specifies an LLC that provides consulting services, which is a service-based business. Such a business, if it has nexus in New Hampshire and generates revenue from services performed within the state, would be subject to New Hampshire’s business taxes. The key is that the *business entity* itself is taxed on its profits (BPT) or its gross receipts/compensation (BET), not the individual members on their distributed income if it’s a pass-through entity. The question is designed to test the understanding of which entity is subject to tax in New Hampshire, given the state’s unique tax structure. Since the LLC operates and generates revenue from services in New Hampshire, it creates a taxable presence. The BPT applies to profits, and the BET applies to gross business receipts and compensation. Therefore, the LLC itself is the taxable entity in this context, regardless of how its members are taxed individually.

New Hampshire’s tax structure is unique in that it does not impose a broad-based income tax or a general sales tax. Instead, it relies on specific taxes such as the Business Profits Tax (BPT) and the Business Enterprise Tax (BET). The BPT is levied on the net income of businesses operating within the state, with a current rate of 7.7%. The BET, on the other hand, is a tax on the cost of doing business, measured by the sum of compensation and purchased tangible property. The BET rate is currently 0.55%. A key distinction lies in how these taxes are applied to different business structures and activities. For instance, the BPT is generally applied to net income derived from business activities within New Hampshire. The BET is applied to the total compensation paid to employees and the cost of purchased tangible property used in the business. A business may be subject to both taxes, or only one, depending on its activities and structure. For example, a service-based business with minimal tangible property might primarily face the BPT, while a manufacturing firm with significant equipment and employee compensation could be subject to both. The determination of tax liability involves careful consideration of gross business receipts, deductible expenses, and the specific definitions of “net income” and “cost of doing business” as defined in New Hampshire statutes. Understanding the nexus requirements for both taxes is also crucial; a business must have a sufficient connection to New Hampshire to be subject to its taxes. The interplay between these two taxes, particularly for businesses with complex operations, necessitates a thorough understanding of their distinct bases and rates to accurately determine tax obligations.

New Hampshire’s tax structure is unique in that it does not impose a broad-based income tax or a general sales tax. Instead, it relies on specific taxes, primarily the Business Profits Tax (BPT) and the Business Enterprise Tax (BET), along with other levies like the real estate transfer tax and the state education property tax. The BPT is levied on the net income of businesses operating in New Hampshire, with a current rate of 7.7%. The BET, on the other hand, is a tax on the gross receipts of businesses, less certain business deductions, and is applied to the value of the business enterprise. The BET rate is currently 0.675%. A critical distinction between the two is their tax base: the BPT is on profits, while the BET is on the enterprise value, which includes tangible and intangible property and compensation. Businesses are generally required to pay the greater of the BPT or the BET. For businesses with gross receipts below \$50,000, the BET is not applicable. For those with gross receipts between \$50,000 and \$100,000, the BET is \$50. Businesses with gross receipts exceeding \$100,000 are subject to the standard BET calculation. The question focuses on a business that falls into the gross receipts bracket where the BET is not a calculation but a fixed amount, and then considers the BPT in relation to this. If a business has gross receipts of \$75,000 and net taxable income of \$5,000, the BET would be \$50. The BPT would be \(0.077 \times \$5,000 = \$385\). Since the BPT (\$385) is greater than the BET (\$50), the business would owe the BPT amount. Therefore, the total tax liability is \$385.

New Hampshire distinguishes itself by not imposing a general sales tax or an income tax on wages. Instead, its primary revenue sources include taxes on business profits, interest and dividends, and specific excise taxes on goods like tobacco and alcohol. The Business Profits Tax (BPT) is levied on the net income of businesses operating in New Hampshire. The Business Enterprise Tax (BET) is a separate tax imposed on the privilege of doing business in the state, measured by the value of the business’s enterprise, which includes real and tangible property, plus compensation paid. A key distinction is that businesses must pay the greater of the BPT or the BET. For a business with gross receipts of \$500,000, \$100,000 in net income subject to BPT, and \$75,000 in taxable enterprise value for BET purposes, the tax liability would be calculated by determining the tax under each regime and selecting the higher amount. The BPT rate is 7.7% on net income, and the BET rate is 0.55% on the enterprise value. BPT calculation: \( \$100,000 \times 0.077 = \$7,700 \) BET calculation: \( \$75,000 \times 0.0055 = \$412.50 \) The business is liable for the greater of the two, which is \$7,700. This highlights the dual nature of business taxation in New Hampshire and the importance of understanding both the BPT and BET to determine the actual tax burden. The state’s tax structure is designed to attract businesses by avoiding broad-based income and sales taxes, focusing instead on specific economic activities and profitability.

New Hampshire’s Business Profits Tax (BPT) applies to the privilege of engaging in business in the state. The tax is levied on the net income of businesses operating within New Hampshire. For entities structured as partnerships, the tax liability flows through to the individual partners. New Hampshire does not impose a corporate income tax on C-corporations. Instead, the BPT is the primary business tax. A key aspect of the BPT is its application to “gross business profits,” which are then reduced by allowable deductions to arrive at “taxable business profits.” Certain business activities are specifically excluded from the definition of “engaging in business” in New Hampshire, such as certain passive investment activities or business conducted solely outside the state. The tax rate for the BPT is a flat percentage applied to taxable business profits. For the tax year 2023, the BPT rate was 7.7%. If a business has \( \$500,000 \) in gross business profits and \( \$150,000 \) in allowable deductions, its taxable business profits would be \( \$500,000 – \$150,000 = \$350,000 \). The tax liability would then be \( \$350,000 \times 0.077 = \$26,950 \). This scenario highlights the calculation of the tax based on net income after deductions, with the rate applied to the resulting taxable base. The tax is administered by the New Hampshire Department of Revenue Administration. Understanding what constitutes “engaging in business” is crucial for determining taxability.

New Hampshire does not impose a general sales tax on tangible personal property or services. Instead, it levies a business profits tax on the net income of businesses operating within the state. Additionally, New Hampshire imposes an interest and dividends tax on certain types of income received by residents. The Meals and Rooms Tax is levied on the sale of prepared meals and the rental of rooms in hotels and other lodging establishments. This tax is collected by the vendor and remitted to the state. The rate for the Meals and Rooms Tax is currently 8.5% on meals and 9% on rooms. For instance, if a restaurant in Manchester sells a meal for $50, the state would collect \(0.085 \times \$50 = \$4.25\) in Meals Tax. Similarly, if a hotel in Portsmouth charges $200 per night for a room, the state would collect \(0.09 \times \$200 = \$18.00\) in Rooms Tax. The Business Profits Tax is applied to the business’s net taxable income, with different rates depending on the business’s structure and income level, but this question focuses on the direct taxation of consumer transactions. The Business Enterprise Tax, which applies to businesses with significant gross receipts or business enterprise value, is also distinct from the Meals and Rooms Tax. The core principle is that New Hampshire avoids a broad-based sales tax, opting instead for targeted taxes on specific consumption activities and business income.

New Hampshire levies a Business Profits Tax (BPT) on the net income of businesses operating within the state. The BPT is a gross business tax, meaning it is levied on gross business receipts less certain deductions. For the purpose of the BPT, gross business receipts include income from all sources, whether within or outside of New Hampshire, unless specifically exempted by statute. Net income is calculated by subtracting allowable business expenses from gross business receipts. Allowable deductions include ordinary and necessary business expenses, depreciation, and certain taxes paid. The tax rate for the BPT is a flat percentage applied to taxable net income. For tax year 2023, the BPT rate is 7.7%. The question asks about the taxability of income derived from out-of-state sales for a business headquartered and operating in New Hampshire. New Hampshire’s BPT is designed to tax income attributable to business activities within the state. However, the statutory definition of gross business receipts for BPT purposes is broad and includes income from all sources unless specifically exempted. This means that income from sales to customers located outside of New Hampshire, if generated through the business’s operations within New Hampshire, is generally considered part of the gross business receipts subject to the BPT, unless a specific exemption or apportionment rule applies. New Hampshire does not have a general sales tax or an income tax on individuals, but it does have the BPT. The key is that the income is generated by the business’s activities, which are rooted in New Hampshire. Therefore, income from out-of-state sales is taxable under the BPT if it is derived from the business’s operations in New Hampshire.

New Hampshire does not impose a general sales tax or a state-level income tax on individuals. However, it does levy taxes on specific types of transactions and activities. The Business Profits Tax (BPT) is a tax on the business enterprise, and the Business Enterprise Tax (BET) is a tax on the enterprise’s gross receipts. The question revolves around the classification of a business for tax purposes in New Hampshire, specifically concerning whether it is considered a “financial institution” for BET purposes. Under New Hampshire law, a financial institution is defined broadly to include entities engaged in lending, servicing loans, or other financial activities. A limited liability company (LLC) formed in Delaware but operating and deriving income from New Hampshire, whose primary business activity is originating and servicing mortgage loans for residential properties within New Hampshire, would generally be considered a financial institution under the state’s tax regulations. This classification dictates how its tax liability is calculated under the BET, which is based on either gross business receipts or net taxable earnings, depending on the entity’s structure and activities. The key differentiator for a financial institution under the BET is its engagement in financial intermediation and related services. The scenario describes exactly such activities.

New Hampshire’s tax structure is unique in that it does not impose a broad-based income tax or a general sales tax. Instead, it relies on specific taxes, primarily the Business Profits Tax (BPT) and the Business Enterprise Tax (BET). The BPT is levied on the profits of businesses operating within the state, while the BET is levied on the gross receipts of businesses, less certain enumerated deductions. For a business to be subject to taxation in New Hampshire, it must have a sufficient nexus with the state. Nexus refers to the sufficient connection a business has with a state that allows that state to impose its tax laws on the business. This connection can be established through physical presence, such as having an office, employees, or inventory in New Hampshire, or through economic presence, which is becoming increasingly important with the rise of e-commerce and remote work. New Hampshire law, specifically RSA 77-A and RSA 77-M, outlines the criteria for nexus. For the BPT, nexus is generally established if a business derives income from sources within New Hampshire. For the BET, nexus is established if a business engages in business activities within New Hampshire. The key distinction for the BET is that it taxes the business enterprise, which includes both tangible and intangible property and compensation. A company that merely solicits orders in New Hampshire and has those orders accepted outside the state, without any further physical presence or economic activity within New Hampshire, may not necessarily establish nexus for taxation purposes under traditional interpretations, although economic nexus standards are evolving. However, if a company has employees, agents, or property within New Hampshire, or conducts substantial business activities there, nexus is generally established.

New Hampshire does not impose a general income tax or a sales tax. However, it does levy taxes on specific types of income and transactions. The Business Profits Tax (BPT) is imposed on the net income of businesses operating in New Hampshire. The Business Enterprise Tax (BET) is imposed on the enterprise value base, which is a measure of a business’s presence in the state. For an entity to be subject to either the BPT or the BET, it must have a substantial economic nexus with New Hampshire. This nexus is established through various activities, including having property, employees, or deriving income from sources within the state. The question revolves around determining which of these taxes applies when a business has a physical presence and derives income from New Hampshire. If the business’s primary activity is generating profits from its operations within the state, the Business Profits Tax is the relevant levy. The Business Enterprise Tax, conversely, focuses on the overall economic footprint and the value generated by the business’s presence in New Hampshire, regardless of specific profit generation from that presence. When a business operates and earns profits in New Hampshire, it falls under the purview of the Business Profits Tax. The Business Enterprise Tax is also a consideration for businesses with a significant economic footprint, but the BPT is the direct tax on the profits earned from those operations.

New Hampshire’s tax structure is characterized by its absence of a broad-based sales tax and a general income tax on wages. Instead, it relies on specific excise taxes and taxes on business profits and interest and dividends. The Business Profits Tax (BPT) is levied on the income of businesses operating in New Hampshire. The Business Enterprise Tax (BET) is levied on the value of the business enterprise, which includes tangible and intangible assets, as well as compensation. The tax base for the BET is the gross receipts of the business less certain allowable deductions. The BPT is a tax on net income, calculated after various business expenses are deducted. The interplay between these two taxes is crucial for businesses operating within the state. Understanding which tax applies, and how their bases are calculated, is fundamental to compliance. The BPT is generally applied to income derived from business activity within New Hampshire. The BET, on the other hand, is levied on the total business enterprise value. The question tests the understanding of how a specific type of income, rental income from commercial property located in New Hampshire, is treated under these two distinct tax regimes. Rental income from tangible property located within the state generally forms part of the gross receipts for the Business Enterprise Tax. For the Business Profits Tax, rental income would typically be considered income and subject to the tax after allowable business deductions. Therefore, rental income from commercial property situated in New Hampshire would be subject to both the Business Profits Tax as income and the Business Enterprise Tax as part of the gross receipts that form the tax base.

New Hampshire does not impose a general sales tax or a use tax on tangible personal property. This is a fundamental aspect of the state’s tax structure, differentiating it from most other U.S. states. The absence of these taxes means that when a resident of New Hampshire purchases goods, whether within the state or from out-of-state vendors, they are not subject to a state-level sales or use tax on those transactions. This policy is intended to encourage consumer spending and business activity within the state. While there are no general sales or use taxes, New Hampshire does levy specific taxes on certain goods and services, such as the Business Profits Tax, Business Enterprise Tax, meals and rooms tax, tobacco excise tax, and alcohol taxes. However, the question specifically addresses the taxation of tangible personal property in general.

New Hampshire’s tax structure is unique in that it does not have a general sales tax or an income tax on wages. Instead, it relies on specific business taxes. The Business Profits Tax (BPT) is levied on the net income of businesses operating within New Hampshire. The Business Enterprise Tax (BET) is a tax on the business’s total enterprise value, which includes tangible and intangible assets, as well as certain liabilities. The BPT is applied to the profits of a business, while the BET is applied to the enterprise value. A business’s tax liability under the BET is calculated by taking its gross receipts and subtracting certain allowable deductions. The tax rate for the BET is 0.675% of the tax base. The tax base for the BET is defined as the sum of the taxpayer’s gross receipts from business activities in New Hampshire, less certain specified deductions, including, but not limited to, the cost of goods sold, wages and salaries paid to employees working in New Hampshire, and depreciation of tangible property used in the business. For the purposes of the BET, gross receipts include all revenue derived from the sale of goods or services. Deductions are carefully defined and are intended to allow businesses to reduce their tax liability by accounting for costs directly associated with generating that revenue. The question asks about the calculation of the BET liability for a business whose tax base is determined to be $5,000,000. The BET rate is 0.675%. Therefore, the BET liability is calculated as the tax base multiplied by the tax rate: \( \text{BET Liability} = \text{Tax Base} \times \text{Tax Rate} \). Substituting the given values, we get \( \text{BET Liability} = \$5,000,000 \times 0.00675 \). Performing the multiplication: \( \$5,000,000 \times 0.00675 = \$33,750 \). This calculation determines the specific tax amount owed under the Business Enterprise Tax.

New Hampshire’s Business Profits Tax (BPT) applies to the net income of businesses operating within the state. The tax is levied on gross business receipts less allowable deductions. For corporations, the BPT is calculated based on a percentage of their taxable business profits. The BPT rate is currently 7.7% for tax periods beginning on or after January 1, 2023. This tax is distinct from the Business Enterprise Tax (BET), which is levied on the value of a business’s capital assets and compensation paid. The BPT is intended to tax the income-generating activities of businesses. Businesses that are primarily engaged in the sale of tangible personal property are subject to the BPT, and the tax base includes gross receipts from these sales, reduced by specific statutory deductions such as the cost of goods sold and certain other operating expenses. Understanding the distinction between gross receipts and taxable income, as well as the specific deductions allowed under New Hampshire law, is crucial for accurate BPT computation. The BPT is a significant revenue source for the state, funding various public services.

New Hampshire’s tax structure is unique in that it does not impose a general sales tax or a broad-based income tax on individuals. Instead, it relies on specific taxes, primarily the Business Profits Tax (BPT) and the Business Enterprise Tax (BET), along with other excise taxes and property taxes. The BPT is levied on the net income of businesses operating in New Hampshire, with a current rate of 7.7%. The BET is a tax on the gross receipts of businesses, less the cost of certain tangible business assets. The BET rate is 0.675% of the tax base. The question revolves around identifying which of these two primary business taxes is calculated based on gross business charges, which is the fundamental definition of the BET. The BPT, conversely, is income-based. Understanding the distinction between these two taxes is crucial for businesses operating within the state, as it dictates how their tax liability is determined and managed. The scenario presented involves a business entity whose tax assessment is being reviewed, requiring knowledge of the foundational principles of New Hampshire’s business taxation framework.

New Hampshire’s tax structure is unique in that it does not impose a general sales tax or an income tax on wages. Instead, it relies on specific taxes that target certain types of transactions and property. The Business Profits Tax (BPT) is levied on the net income of businesses operating in New Hampshire. The Business Enterprise Tax (BET) is levied on the gross receipts of businesses, with certain deductions and exemptions. The question asks about a specific scenario involving a business with both tangible personal property and intangible assets, and its tax liability under New Hampshire law. To determine the correct answer, one must understand the distinction between the BPT and BET and how they apply to different types of business activities and assets. The BPT applies to the profits of the business, while the BET applies to the gross receipts and the value of business enterprise, which can include tangible and intangible property used in the business. In this scenario, the business has both tangible personal property and intangible assets used in its operations. The BET is designed to capture a portion of the value generated by the business enterprise, including the utilization of intangible assets like intellectual property or customer lists, in addition to tangible assets. Therefore, the BET would be applicable to the value of both the tangible personal property and the intangible assets employed in the business enterprise, as well as the gross receipts. The BPT would apply to the net profits derived from these activities. The question focuses on the tax applied to the *value of assets* used in the business. The Business Enterprise Tax (BET) in New Hampshire is levied on the value of a business’s tangible and intangible property, as well as its gross receipts, if certain thresholds are met. The BET is designed to tax the economic activity of an enterprise operating within the state. Therefore, the value of both the tangible personal property and the intangible assets employed in the business would be subject to the BET. The BPT, conversely, taxes the net profits of the business. The scenario specifically asks about the tax applied to the *value of assets*.

New Hampshire’s tax structure is unique in that it does not impose a general sales tax or a broad-based income tax on wages. Instead, it relies on specific excise taxes and a business profits tax. The Business Profits Tax (BPT) is levied on the net income of businesses operating within New Hampshire. For entities structured as partnerships or S-corporations, the tax liability flows through to the individual partners or shareholders. However, New Hampshire does not have a personal income tax on wages or salaries. Therefore, dividends received by an individual from a New Hampshire-based corporation, which are typically considered passive income, are not subject to New Hampshire’s income tax. This is a key distinction from states that have a personal income tax that would capture such dividend income. The state’s revenue is primarily derived from the Business Profits Tax, the Business Enterprise Tax (BET), the state’s portion of the tobacco excise tax, and the excise tax on meals and rooms (lodging). The BET, in contrast to the BPT, is levied on the gross receipts of a business, less certain allowable deductions, and is designed to capture businesses that may have significant revenue but low profits. Understanding the distinction between these taxes and how they apply to different business structures and income types is crucial for New Hampshire tax law compliance. The absence of a personal income tax on dividends is a direct consequence of New Hampshire’s deliberate tax policy choices.

New Hampshire levies a Business Profits Tax (BPT) and a Business Enterprise Tax (BET). The BPT is imposed on the net income of businesses operating in New Hampshire, while the BET is imposed on the gross receipts of businesses that are engaged in business in the state and have a substantial economic nexus. A key distinction lies in the tax base and the calculation methodology. The BPT is generally calculated on net income after allowable deductions, similar to federal corporate income tax. The BET, however, is a tax on the cost of doing business in New Hampshire, measured by the sum of compensation, rentals, and the cost of tangible property. RSA 77-A:1 defines “gross receipts” for BET purposes, and RSA 77-E:2 outlines the tax rate for the BET, which is currently 0.375%. Businesses are subject to the BET if their gross business receipts in New Hampshire exceed \$100,000. Importantly, a business may be subject to both taxes, but credits are available to mitigate double taxation. For instance, a credit for BPT paid can be applied against the BET liability, up to a certain limit. The question focuses on the threshold for the BET. A business is subject to the BET if its gross business receipts in New Hampshire exceed \$100,000. Therefore, a business with gross business receipts of \$95,000 in New Hampshire would not be subject to the BET.