Revision: Nov. 6, 2017, 3:59 p.m.
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
-----------------------------------------------------------------
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.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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.
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