Bill Text - HB1101 (2006)

Relative to the definition of "hotel" for purposes of exclusion from the meals and rooms tax.


Revision: Jan. 21, 2010, midnight

HB 1101-FN-LOCAL – AS INTRODUCED

2006 SESSION

06-2413

09/04

HOUSE BILL 1101-FN-LOCAL

AN ACT relative to the definition of “hotel” for purposes of exclusion from the meals and rooms tax.

SPONSORS: Rep. Almy, Graf 11

COMMITTEE: Ways and Means

ANALYSIS

This bill changes the definition of “hotel” for purposes of exclusion from the meals and rooms tax.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-2413

09/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT relative to the definition of “hotel” for purposes of exclusion from the meals and rooms tax.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Meals and Rooms Tax; Definitions; Hotel. Amend the introductory paragraph of RSA 78-A:3, III to read as follows:

III. “Hotel” means an establishment which holds itself out to the public by offering sleeping accommodations for rent at a rate which is greater than $140 per week, whether or not the major portion of its operating receipts is derived from sleeping accommodations. The term includes, but is not limited to, inns, motels, tourist homes and cabins, ski dormitories, ski lodges, lodging homes, rooming houses, furnished room houses, boarding houses, private clubs, hostels, cottages, camps, chalets, barracks, dormitories, and apartments. The term does not include the following:

2 Effective Date. This act shall take effect July 1, 2006.

LBAO

06-2413

10/17/05

HB 1101-FN-LOCAL - FISCAL NOTE

AN ACT relative to the definition of “hotel” for purposes of exclusion from the meals and rooms tax.

FISCAL IMPACT:

      The Department of Revenue Administration states this bill will decrease state unrestricted general fund revenue and increase state expenditures by an indeterminable amount in FY 2007 and each year thereafter. There is no fiscal impact on county and local revenue or expenditures.

METHODOLOGY:

    The Department states that this bill changes the definition of “hotel” to exempt hotels charging $140 or less per week for a room from the meals and rooms tax. This exemption will decrease unrestricted general fund revenue by an indeterminable amount, and the Department indicates state expenditures will increase to administer this tax by an indeterminable, but significant amount. The Department further states that this change will also require the Department to significantly change the meals and rooms tax computer system to accommodate this definition change, and the Department expects the audit costs to increase due to the difficulty of distinguishing between those business which meet the proposed definition and those that do not.

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