HB534 (2017) Detail

Relative to reporting of meals and rooms tax revenue by the department of revenue administration.


HB 534-FN - AS INTRODUCED

 

 

2017 SESSION

17-0575

10/09

 

HOUSE BILL 534-FN

 

AN ACT relative to reporting of meals and rooms tax revenue by the department of revenue administration.

 

SPONSORS: Rep. Bean, Rock. 21

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill requires the department of revenue administration to collect and report to cities and towns, and make publicly available, the amount of meals and room tax revenues collected in each city or town.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17-0575

10/09

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Seventeen

 

AN ACT relative to reporting of meals and rooms tax revenue by the department of revenue administration.

 

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

 

1  New Subparagraph; Department of Revenue Administration; Department Records; Disclosure.  Amend RSA 21-J:14, V by inserting after subparagraph (h) the following new subparagraph:

(i)  The department shall make publicly available the total amount of revenue collected from the meals and rooms tax in each municipality pursuant to RSA 78-A:19-a.

2  New Section; Tax on Meals and Rooms; Disclosure.  Amend RSA 78-A by inserting after section 19 the following new section:

78-A:19-a  Collection and Disclosure of Revenue Information.  The department shall collect information about the revenue collected from the meals and rooms tax in each municipality necessary to determine the total amount of meals and rooms tax revenue collected in each municipality.  The department shall make its determination of the total amount of meals and room tax revenue collected in a municipality and annually provide the information in a report to each town or city in which meals and rooms tax revenues were collected.

3  Meals and Rooms Tax; Collection; Information Required.  Amend RSA 78-A:7, II-IV to read as follows:

II.  Each operator shall keep books and records in a form acceptable to the department showing the amount of all taxes collected and the town or city in which such taxes were collected.  The operator shall pay the taxes over to the state as provided in this section.  If the department believes that special action is necessary because payment of taxes collected may be in jeopardy, it may direct an operator to keep all taxes collected separate from any other funds.  The department may require that the taxes be periodically deposited in a bank designated by the department, in an account in the name of the department.  The department may withdraw these tax collections from the bank account and apply them to the payment of the taxes due from the operator.  When an operator commingles tax money with money belonging to him or her, the claim of the state for the tax is traceable, is enforceable against all other claims, and takes precedence over all other claims against the commingled funds.  No taxes collected by an operator under this chapter may be sent outside the state without the written consent of the department.

III.  To compensate operators for keeping the prescribed records and the proper account and remitting of taxes by them, operators are allowed to retain 3 percent of the taxes due and to be remitted if the return and payment are timely received by the department of revenue administration, as provided in RSA 78-A:8, III.

IV.  In lieu of keeping detailed records of taxes collected, and in lieu of payment of the taxes collected under this chapter, an operator may, in writing, elect to compute the amount of taxes due at 9 percent of the total taxable rent, charge for meals, or gross rental receipts received by it, or both, exclusive of the taxes collected on such rents, charges, and gross rental receipts, provided the operator identifies the percentage of such amounts received within each town or city in which the operator does business.  If this election is made, the operator may not change the method of computing taxes without the written consent of the department.  Any balance of the tax remaining in possession of the operator may be retained by it.

4  Effective Date.  This act shall take effect 60 days after its passage.

 

LBAO

17-0575

1/11/17

 

HB 534-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to reporting of meals and rooms tax revenue by the department of revenue administration.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2018

FY 2019

FY 2020

FY 2021

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Increase

$0

$0

$0

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [    ] Other

 

 

 

 

 

METHODOLOGY:

This bill requires the Department of Revenue Administration to collect and report the amount of meals and rooms tax collected in each municipality and annually report that information to each municipality where the revenues were collected.  The bill amends RSA 21-J relative to Department's confidentiality provision to allow the total revenue collected to be made publicly available.  Meals and rooms operators would be required to keep books and records sufficient to show the municipality where the meals and rooms tax revenue was collected.  The Department would need to create forms, draft rules and incur vendor costs to update the e-file and telefile systems to accommodate the reporting required by this bill, resulting in indeterminable expenses exceeding $10,000 in FY 2018.

 

AGENCIES CONTACTED:

Department of Revenue Admistration

 

 

Links

HB534 at GenCourtMobile

Action Dates

Date Body Type
Feb. 1, 2017 House Hearing
Feb. 8, 2017 House Exec Session
March 8, 2017 House Floor Vote

Bill Text Revisions

HB534 Revision: 874 Date: Jan. 26, 2017, 8:21 a.m.

Docket

Date Status
Jan. 5, 2017 Introduced 01/05/2017 and referred to Ways and Means HJ 3 P. 17
Feb. 1, 2017 Public Hearing: 02/01/2017 09:30 AM LOB 202
Feb. 8, 2017 Executive Session: 02/08/2017 LOB 202
March 8, 2017 Committee Report: Inexpedient to Legislate for 03/08/2017 (Vote 19-0; CC)
March 8, 2017 Inexpedient to Legislate: MA VV 03/08/2017 HJ 9 P. 49