relative to the rate and exemptions of the interest and dividends tax.

This bill proposes creating a new state tax on interest and dividend income for New Hampshire residents starting in 2025. It would impose a 5 percent tax on individuals, partnerships, and other entities that earn more than $7,500 annually from sources like bonds, corporate dividends, and mutual funds, while excluding interest from state government debt and income held in retirement accounts. The legislation includes a provision to automatically adjust the $7,500 income threshold every two years based on changes in the Consumer Price Index. Additionally, the bill clarifies how the tax applies to partnerships and limited liability companies, ensuring that only the portion of income attributable to residents of the state is taxed.