Environment
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
StateNew HampshireIntroduced
HB 417: relative to repealing the communications services tax.
Unknown Sponsor
HB 417 status: Introduced — Interim Study Report: Not Recommended for Future Legislation 09/02/2026 (Vote 18-0; ) (updated Sep 14, 2026).
Source
LegiScan
Confidence
High
Analysis basis
LegiScan full bill text
01
What this bill does
Official summary alongside an AI-generated read on where it stands and why.
Overall Score
73OUT OF 100
Score:73/100 civic fit
Risk:Moderate Risk
Impact:High Impact 70/100
Constitutionality95%
Bipartisan70%
Public opinion85%
Bill summary
What changes
HB 417 reduces the communications services tax rate from 7% to 4% starting July 1, 2025, and completely repeals the tax starting July 1, 2026.
Who is affected
Consumers of telecommunications services, telecommunications service providers, and the state General Fund.
Requirements and enforcement
The Department of Revenue Administration must update tax forms and electronic management systems to accommodate the rate change and eventual repeal.
Costs and funding
The state faces an estimated annual revenue loss of $30.6 million upon full implementation.
When it takes effect
Rate reduction effective July 1, 2025; full repeal effective July 1, 2026.
Potential benefits
Lower costs for telecommunications consumers and reduced regulatory/compliance burden for communications companies.
Risks and tradeoffs
Significant loss of state tax revenue; potential for budget shortfalls.
What is still unknown
Whether service providers will pass the entirety of the tax savings to the consumer and how the state will adjust its budget to accommodate the revenue loss.
02
Impact analysis
✦ AI analysisModeled effects across six domains, estimated from bill text and comparable legislation.
Economy
Positive outlook
75%
Benefits
- Elimination of tax burden on communications services
- Reduction in operational and compliance costs for providers
- Increased disposable income for residents
Risks
- Loss of $30.6 million in annual General Fund revenue
- Necessity to identify alternative state revenue sources
- Budgetary impact on programs funded through the General Fund
Society
Positive outlook
70%
Benefits
- Direct reduction in monthly telecommunications bills
- Relief from regressive taxation on essential connectivity
- Improved affordability of digital access for families
Risks
- Reduction in state funding for public services
- Uncertainty regarding whether savings will be passed to consumers
- Pressure to increase other taxes to offset revenue loss
Technology Industry
Positive outlook
75%
Benefits
- Simplified billing and accounting processes for service providers
- Removal of excise tax collection responsibilities
- Lower price points for consumers improving market volume
Risks
- Costs associated with updating billing software systems
- Transitional complexity during the 2026 phase-out period
- Loss of clearly defined tax treatment for communication services
Civic Accountability
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
Public Health & Safety
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
03
How trustworthy & consequential it is
Sourcing already shown above, this is what the analysis found worth flagging.
Source
LegiScan
Official bill text or data from LegiScan.
Confidence
High
Information is complete and verified.
Analysis basis
LegiScan full bill text
Source used for this bill's analysis.
Source note
Repealing the tax significantly reduces the state General Fund, potentially creating a structural budget gap.
Analysis scope
Revenue impact estimates depend on stable future collection trends.
04
Where it stands
Official record- IntroducedCurrent
- CommitteeUpcoming
- Chamber votesUpcoming
- Final agreementUpcoming
- GovernorUpcoming
- EnactedUpcoming
05
How it affects your district
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06
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