Bill Text - SB474 (2010)

Changing the rate of the meals and rooms tax, repealing the meals and rooms tax on campsites, and requiring a reduction in general fund appropriations for the biennium ending June 30, 2011.


Revision: March 29, 2010, midnight

SB 474-FN-A-LOCAL – AS INTRODUCED

2010 SESSION

10-2801

09/03

SENATE BILL 474-FN-A-LOCAL

AN ACT changing the rate of the meals and rooms tax, repealing the meals and rooms tax on campsites, and requiring a reduction in general fund appropriations for the biennium ending June 30, 2011.

SPONSORS: Sen. Bradley, Dist 3; Sen. Barnes, Jr., Dist 17; Sen. Bragdon, Dist 11; Sen. Carson, Dist 14; Sen. Downing, Dist 22; Sen. Gallus, Dist 1; Sen. Letourneau, Dist 19; Sen. Roberge, Dist 9; Rep. Chandler, Carr 1; Rep. Umberger, Carr 1; Rep. Boutin, Merr 9; Rep. Wendelboe, Belk 1

COMMITTEE: Ways and Means

ANALYSIS

This bill changes the rate of the meals and rooms tax and repeals the meals and rooms tax on campsites.

The bill also requires the governor to reduce general fund appropriations by $8,000,000 for the biennium ending June 30, 2011.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

10-2801

09/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Ten

AN ACT changing the rate of the meals and rooms tax, repealing the meals and rooms tax on campsites, and requiring a reduction in general fund appropriations for the biennium ending June 30, 2011.

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

1 Imposition of Tax. Amend RSA 78-A:6, I through II-a to read as follows:

I. A tax of [9] 8 percent of the rent is imposed upon each occupancy.

II. A tax is imposed on taxable meals based upon the charge therefor as follows:

(a) [Four] Three cents for a charge between $.36 and $.37 inclusive;

(b) [Five] Four cents for a charge between $.38 and $.50 inclusive;

(c) [Six] Five cents for a charge between $.51 and $.62 inclusive;

(d) [Seven] Six cents for a charge between $.63 and $.75 inclusive;

(e) [Eight] Seven cents for a charge between $.76 and $.87 inclusive;

(f) [Nine] Eight cents for a charge between $.88 and $1.00 inclusive;

(g) [Nine] Eight percent of the charge for taxable meals over $1.00, provided that fractions of cents shall be rounded up to the next whole cent.

II-a. A tax of [9] 8 percent is imposed upon the gross rental receipts of each rental.

2 Meals and Rooms Tax; Definition of Hotel; Campsites. 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, 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, [campsites,] chalets, barracks, dormitories, and apartments. The term does not include the following:

3 Reduction of General Fund Appropriations. For the biennium ending June 30, 2011, the governor shall implement a plan to reduce general fund appropriations by $8,000,000. Any direct services to New Hampshire citizens shall be excluded from these reductions unless expressly approved by the fiscal committee of the general court. The office of the governor shall provide a quarterly report of reductions made under this section to the fiscal committee of the general court.

4 Effective Date. This act shall take effect July 1, 2010.

LBAO

10-2801 Revised 03/26/10

SB 474 FISCAL NOTE

AN ACT changing the rate of the meals and rooms tax, repealing the meals and rooms tax on campsites, and requiring a reduction in general fund appropriations for the biennium ending June 30, 2011.

FISCAL IMPACT:

    The Department of Revenue Administration states this bill will decrease state general fund and education trust fund revenue by an indeterminable amount in FY 2011, and each fiscal year thereafter.

      This bill directs the Governor to reduce general fund appropriations by $8,000,000 over the biennium ending June 30, 2011.

    There will be no fiscal impact on county and local revenue or expenditures.

METHODOLOGY:

    The Department of Revenue Administration states this bill changes the rate of the meals and rooms tax and tax on motor vehicle rentals from 9% to 8% and repeals the meals and rooms tax on campsites. The Department calculates the meals and rooms rate change will decrease state revenue by approximately $30.1 million in FY 2011 and an indeterminable amount in each fiscal year thereafter. The majority of the decrease will be to state general fund revenue, but the tax portion on motor vehicle rentals will decrease education trust fund revenue. The Department using FY 2008 meals & rooms tax collections as the base, estimates the tax rate change will decrease meals & rooms tax revenue by $26 million in FY 2011. The Department estimates eliminating the meals & rooms tax on campsites will decrease state general fund revenue by $4.1 million in FY 2011. The Department did not make any projections beyond FY 2011. The Department can administer this bill within their existing budget.

    The Office of Legislative Budget Assistant states that this bill directs the Governor to implement a plan to reduce general fund appropriations by $8 million over the biennium ending June 30, 2011. The bill states that these reductions shall exclude any direct services to New Hampshire citizens unless expressly approved by the Fiscal Committee. Further, the Governor shall provide quarterly reports of reductions made to the Fiscal Committee.

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