Vector Marketing Corp. v. N.H. Dep't of Revenue Admin., 156 N.H. 781

Summary

The Supreme Court of New Hampshire considered whether Vector Marketing Corporation's district managers qualified as independent contractors under New Hampshire Administrative Rule Rev 301.17. The court held that the 1998 version of the rule required satisfaction of subparts (a) and (b), plus either subpart (c) or (d), and therefore affirmed summary judgment for the Department of Revenue Administration regarding liability for the business profits tax.

Holdings

1. The 1998 version of Rule Rev 301.17 requires an independent contractor to satisfy subparts (a) and (b) and either subpart (c) or subpart (d); IRS independent-contractor status under subpart (d) is not an alternative to the multiple-business-organizations requirement in subpart (b).
2. Vector's district managers were not independent contractors under Rule Rev 301.17 because they did not work for multiple business organizations, notwithstanding their IRS independent-contractor status.

Questions Presented

1. Whether the 1998 version of New Hampshire Administrative Rule Rev 301.17 required an independent contractor to satisfy subparts (a) and (b) and either subpart (c) or subpart (d), or whether subpart (d) provided an alternative test independent of subpart (b).
2. Whether Vector's district managers qualified as independent contractors under Rule Rev 301.17 and thereby exempted Vector from the New Hampshire business profits tax.

Disposition

affirmed