Bill Text - HB1590 (2016)

Relative to the regulation and taxation of short-term rental businesses.


Revision: March 8, 2016, midnight

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HB 1590-FN-A-LOCAL - AS AMENDED BY THE HOUSE

11Feb2016... 0287h

2016 SESSION

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HOUSE BILL\t1590-FN-A-LOCAL

 

AN ACT\trelative to the regulation and taxation of short-term rental businesses.

 

SPONSORS:\tRep. Butler, Carr. 7; Sen. Fuller Clark, Dist 21

 

COMMITTEE:\tCommerce and Consumer Affairs

 

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AMENDED ANALYSIS

 

\tThis bill requires advertisments by short-term rental businesses to display the meals and rooms license number of the operator.  

 

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Explanation:\tMatter added to current law appears in bold italics.

\t\tMatter removed from current law appears [in brackets and struckthrough.]

\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.

11Feb2016... 0287h\t16-2576

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STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Sixteen

 

AN ACT\trelative to the regulation and taxation of short-term rental businesses.

 

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

 

\t1  New Subdivision; Regulation of Short-Term Rental Businesses.  Amend RSA 353 by inserting after section 10 the following new subdivision:

\tRegulation of Short-Term Rental Businesses

\t353:11  Definition.  In this subdivision, "short-term rental business" means any person or entity which offers or advertises the rental of one or more rooms in a residential unit for occupancy for tourist or transient use.

\t353:12  Advertisements.  Any advertisement by a short-term rental business for printing, display, publication, distribution, or broadcast offering a short-term rental shall clearly and conspicuously display the meals and rooms license number of the operator.  A first-time violation of the provisions of this section may result in a warning from the department of revenue administration that the operator's license may be revoked, suspended, or denied.  Subsequent violations of the provisions of this paragraph may constitute sufficient cause for revocation, suspension, or denial of license.

\t2  Effective Date.  This act shall take effect January 1, 2017.

 

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HB 1590-FN-A-LOCAL- FISCAL NOTE

 

AN ACT\trelative to the regulation and taxation of short-term rental businesses.

 

 

FISCAL IMPACT:

The Department of State and Judicial Branch state this bill, as amended by the House (Amendment #2016-0287h), may increase state expenditures and revenue by indeterminable amounts in FY 2017 and each year thereafter.  There will be no fiscal impact to county and local expenditures and revenue.

 

METHODOLOGY:

The Department of State states this bill requires a short term rental business to register as a business with the secretary of state.  A minimum fee of $50 is required to register a business and it is not known how many short term rental businesses would file under this bill.  To the extent short term rental businesses register and pay the required fee, state revenue will increase.  

 

The Judicial Branch states this bill contains an unspecified misdemeanor, which can be either class A or B, with the presumption being a class B misdemeanor.  There is no method to determine how many charges would be brought as a result of this bill to determine the fiscal impact on expenditures.  The table below provides the potential costs associated with the penalty included in this bill:  

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FY 2017

FY 2018

Judicial Branch*

 

 

Class B Misdemeanor

$50

$53

Class A Misdemeanor

$70

$74

Appeals

Varies

Varies

*It should be noted average case cost estimates for FY 2017 and FY 2018 are based on data that is more than ten years old and does not reflect changes to the courts over that same period of time or the impact these changes may have on processing the various case types.

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The Department of Revenue Administration states this bill would have no fiscal impact on tax revenue as short-term rental businesses are already taxable under existing statutes.

 

The New Hampshire Association of Counties, Judicial Council, and Department of Justice state this bill has no fiscal impact on their operations.

None