HB 166-FN-A-LOCAL – AS INTRODUCED
2011 SESSION
09/03
HOUSE BILL 166-FN-A-LOCAL
AN ACT reducing the rate of the meals and rooms tax.
SPONSORS: Rep. Ahlgren, Carr 4; Rep. Knox, Carr 4; Rep. Renzullo, Hills 27
This bill reduces the rate of 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0403
09/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT reducing the rate of the meals and rooms tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Meals and Rooms Tax Rate Reduced. Amend RSA 78-A:6 to read as follows:
78-A:6 Imposition of Tax.
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.
III. The operator shall collect the taxes imposed by this section and shall pay them over to the state as provided in this chapter.
2 Effective Date. This act shall take effect July 1, 2011.
LBAO
11-0403
01/04/11
HB 166-FN-A-LOCAL - FISCAL NOTE
AN ACT reducing the rate of the meals and rooms tax.
FISCAL IMPACT:
The Department of Revenue Administration states this bill will decrease state revenue, and state expenditures and local revenue by an indeterminable amount in FY 2012 and each year thereafter. This bill will have no fiscal impact on county and local expenditures, or county revenue.
METHODOLOGY:
The Department of Revenue Administration states this bill decreases the meals and rooms tax rate from 9% to 8% effective July 1, 2011. The Department states based upon cash received in FY 2010 taxable Meals and Rooms sales, excluding commissions, were $2,548,061,689. The Department estimates Meals and Rooms sales at $2,722,222,222 in FY 2011 based on previous Legislative estimates. Assuming historical sales growth, the Department does not anticipate future sales growth would exceed 5% from FY 2011 to FY 2012. The Department states if sales remained at the FY 2011 budgeted level, a reduction in the Meals and Rooms tax rate from 9% to 8% would decrease revenue by approximately $27,222,222 ($2,722,222,222 X 1%). If, however, New Hampshire experiences a 5% increase in sales due to an economic recovery and reduction in the Meals and Rooms tax rate, then the Department estimates revenue would decrease by approximately $16,333,333 [$245,000,000-(($2,722,222,222 X 1.05%) X 8%)]. The Department is unable to provide an estimate of the potential fiscal impact beyond FY 2012.
Any decrease in Meals and Rooms revenue would decrease the distribution amount to cities and towns from the State pursuant to the formula contained under RSA 78-A:26.