HB1548 (2018) Detail

Relative to meals and rooms taxes applicable to room remarketers.


HB 1548-FN - AS INTRODUCED

 

 

2018 SESSION

18-2589

05/10

 

HOUSE BILL 1548-FN

 

AN ACT relative to meals and rooms taxes applicable to room remarketers.

 

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

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill defines room remarketer under RSA 78-A and provides that charges by room remarketers shall be subject to 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2589

05/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to meals and rooms taxes applicable to room remarketers.

 

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

 

1  Purpose.  The purpose of this act is to make clear the status of existing law relating to the application of the tax on meals and rooms under RSA 78-A to the rental of taxable accommodations through the use of online travel companies, accommodation marketplaces, or any other third-party, agent, or other arrangement giving a person the ability or authority to engage in the sale of taxable accommodations.

2  Tax on Meals and Rooms; Definition of Operator.  Amend RSA 78-A:3, IV to read as follows:

IV.  "Operator'' means any person operating a hotel, charging for a taxable meal, or receiving gross rental receipts, whether as owner or proprietor or lessee, sublessee, mortgagee, licensee, or otherwise.  Operator includes any room remarketer.

3  Definition of Rent; Charge by Room Marketer Included.  Amend RSA 78-A:3, VIII(a) to read as follows:

(a)  The full amount of consideration received by an operator for occupancy valued in money, whether received in money or otherwise, including all receipts, cash, credits, and property, or services of any kind or nature, and also any amount for which the occupant is liable for the occupancy without any deduction of any kind, including but not limited to, the full amount of service or other charges made by a room remarketer in accordance with RSA 78-A:6-a; and

4  New Paragraph; Room Marketer Defined.  Amend RSA 78-A:3 by inserting after paragraph XX the following new paragraph:

XXI.  "Room remarketer" means any person having any right, access, ability, or authority through an Internet transaction or any other means whatsoever, to offer, reserve, book, arrange for, remarket, distribute, broker, resell, or facilitate the transfer of rooms the occupancy of which is subject to tax under this chapter.  The term includes, but shall not be limited to, online travel companies and online accommodation marketplaces.

5  New Subparagraph; Collection of Tax.  Amend RSA 78-A:7, I by inserting after subparagraph (b) the following new subparagraph:

(c)  If the occupancy is reserved, booked, or arranged for, or otherwise facilitated in whole or in part by a room remarketer, the tax shall be imposed on the full rent received, including any service or other charges received by any room remarketer in accordance with RSA 78-A:6-a and shall be collected and remitted by the room remarketer that reserves, books, arranges for, or otherwise facilitates the occupancy.

6  Effective Date.  This act shall take effect July 1, 2018.

 

LBAO

18-2589

10/27/17

 

HB 1548-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to meals and rooms taxes applicable to room remarketers.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2019

FY 2020

FY 2021

FY 2022

   Appropriation

$0

$0

$0

$0

   Revenue

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

   Expenditures

$0

$0

$0

$0

Funding Source:

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

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

   Expenditures

$0

$0

$0

$0

 

METHODOLOGY:

This bill clarifies existing law relative to the application of the Meals and Rentals Tax for online travel companies, accommodation marketplaces, or any other third-party agent, or other arrangement giving a person the ability or authority to engage in the sale of taxable accommodations.  The bill also clarifies the definition of "room remarketer".  The Department indicates due to confusion regarding the existing law and noncompliance in the taxpayer community relative to the application of Meals and Rooms Tax on accommodations booked utilizing "room remarketers", this bill should result in increased compliance resulting in increased revenue.  The Department is not able to estimate the increase in revenue resulting from this bill.

 

AGENCIES CONTACTED:

Department of Revenue Administration

 

Links

HB1548 at GenCourtMobile

Action Dates

Date Body Type
Jan. 18, 2018 House Hearing
Jan. 24, 2018 House Exec Session
House Floor Vote
Feb. 7, 2018 House Floor Vote
Feb. 15, 2018 House Floor Vote

Bill Text Revisions

HB1548 Revision: 2060 Date: Nov. 6, 2017, 3:59 p.m.

Docket

Date Status
Jan. 3, 2018 Introduced 01/03/2018 and referred to Ways and Means HJ 1 P. 14
Jan. 18, 2018 Public Hearing: 01/18/2018 01:15 PM LOB 202
Jan. 24, 2018 Executive Session: 01/24/2018 LOB 202
Majority Committee Report: Inexpedient to Legislate (Vote 14-9; RC)
Feb. 7, 2018 Majority Committee Report: Inexpedient to Legislate for 02/07/2018 (Vote 14-9; RC)
Minority Committee Report: Ought to Pass
Special Order to 2/15/2018 Without Objection HJ 3 P. 81
Feb. 15, 2018 Inexpedient to Legislate: MA VV 02/15/2018 HJ 4 P. 40