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Live and Gamble Free in New Hampshire

May 19th, 2011 No comments

…from state taxes, that is.

Back in February, the New Hampshire Senate passed a bill repealing the state’s 10% gambling tax.  On May 9, Governor John Lynch signed the bill into law, effective as of May 23, 2011.

Great news for recreational gamblers in New Hampshire.  Professional gamblers in New Hampshire, however, may still be subject to the state’s Business Profits Tax, which is assessed on income from conducting business activity within the state.  The Business Profits Tax is 8.5%, but if total gross receipts during a tax year are less than $50,000, then the tax does not apply.

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Live Free or Die

February 21st, 2011 1 comment

Professional gamblers pay state taxes on their gambling winnings only if the pertinent states impose a tax on business income.  The story is quite different for recreational gamblers.

Recreational gamblers need pay attention to each state’s income tax on gambling winnings, if any, as well as limitations on the ability to deduct gambling losses.  In other words, not all states treat gambling winnings and losses alike.

“Live Free or Die” is the state motto of New Hampshire.  Residents of New Hampshire and non-residents with New Hampshire gambling winnings may soon be living more freely: The State’s Senate recently passed a bill to repeal the state’s 10% gambling tax.

Under current New Hampshire Law, a 10% tax is imposed on all gambling winnings.  NH residents must report all gambling winnings, no matter the source, and non-residents must report all gambling winnings derived from NH entities.

It didn’t take long for political opposition to this gambling tax to be put into action.  Clearly, the state’s Lottery Commission has a strong voice, claiming that the gambling tax, effective July 1, 2009, has significantly hurt lottery and Powerball ticket sales.  The bill is now under review by the Senate Finance Committee, and then will make its way to the House.

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