1 New Sections; Meals and Rooms; Local Option; Additional Surcharge on Occupancy. Amend RSA 78-A by inserting after section 6-a the following new sections:

78-A:6-b Additional Surcharge on Occupancy. Upon adoption by a town or city as provided in RSA 78-A:6-c, the following additional local surcharge on occupancy shall apply:

I. In addition to the rate of tax on occupancy under RSA 78-A:6, I, an operator within the town or city shall assess either the additional charge or additional rate, as determined by the town or city, and apply the charge or rate to each occupancy as defined in this chapter; provided that the additional charge or rate shall not exceed $2 per occupancy per 24-hour period. The operator shall collect the additional surcharges imposed by this section and shall pay them over to the state as provided in this chapter.

II. The department shall pay over all revenues collected under paragraph I within a town or city as provided in RSA 78-A:26, IV.

III. Revenues paid to the town or city by the state treasurer shall be deposited in a capital reserve fund, revolving fund, or other special revenue fund as may be authorized.

IV. Any funds received under RSA 78-A:26, IV shall not be deemed part of the general fund accumulated surplus nor shall any surplus be expended for any purpose or transferred to any appropriation until such time as the legislative body shall have voted to appropriate a specific amount from said fund for a specific purpose.

78-A:6-c Local Option; Procedure.

I. Any town or city may adopt the provisions for the additional local surcharge on occupancy in the following manner:

(a) In a town, other than a town that has adopted a charter pursuant to RSA 49-D, the question shall be placed on the warrant of a special or annual town meeting, by the governing body or by petition pursuant to RSA 39:3.

(b) In a city or town that has adopted a charter pursuant to RSA 49-C or RSA 49-D, the legislative body may consider and act upon the question in accordance with its normal procedures for passage of resolutions, ordinances, and other legislation. In the alternative, the legislative body of such municipality may vote to place the question on the official ballot for any regular municipal election.

II. The vote shall specify the provisions of the additional local surcharge on occupancy under RSA 78-A:6-b, the additional charge or additional rate to be applied to each occupancy and collected by the operators licensed to collect meals and rooms taxes under RSA 78-A, and the capital reserve fund, revolving fund, or special revenue fund in which the town or city treasurer shall deposit the revenues received under RSA 78-A:26, IV. If a majority of those voting on the question vote "yes,'' the provisions of RSA 78-A:6-b shall take effect within the town or city, on the date set by the governing body in consultation with the department of revenue administration, but in no case earlier than 60 days after the vote.

III. A town or city may rescind the vote to adopt the provisions of RSA 78-A:6-b in the manner described in paragraphs I and II.

2 Tax on Meals and Rooms; Disposition of Revenue; Exception Added. Amend the introductory paragraph of RSA 78-A:26, I to read as follows:

I. Beginning on July 1, 1995 2019, and for each fiscal year thereafter, the department shall pay over all revenue, except revenues identified in paragraph paragraphs III and IV of this section, collected under this chapter to the state treasurer. On or before September 15 of each year, the department shall determine the cost of administration of this chapter for the fiscal year ending on the preceding June 30, and it shall notify the state treasurer of these costs by a report certified by them as to correctness. After deducting the cost of administration of the chapter from the total income, the state treasurer shall distribute the net income as follows:

3 New Paragraph; Disposition of Revenue; Payment to Town or City. Amend RSA 78-A:26 by inserting after paragraph III the following new paragraph:

IV. The department shall pay over all revenue collected as additional surcharges on occupancy for a town or city pursuant to RSA 78-A:6-b to the state treasurer who shall distribute the additional surcharge to the town or city adopting such additional surcharge on occupancy at the same time as the distribution is made in subparagraph I(c).

4 Reference to Local Option Added. Amend RSA 78-A:7, III to read as follows:

III. To compensate operators for keeping the prescribed records and the proper account and remitting of taxes by them, including local option taxes, 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.

5 Effective Date. This act shall take effect July 1, 2019.

1 New Sections; Meals and Rooms; Local Option; Additional Surcharge on Occupancy. Amend RSA 78-A by inserting after section 6-a the following new sections:

78-A:6-b Additional Surcharge on Occupancy. Upon adoption by a town or city as provided in RSA 78-A:6-c, the following additional local surcharge on occupancy shall apply:

I. In addition to the rate of tax on occupancy under RSA 78-A:6, I, an operator within the town or city shall assess either the additional charge or additional rate, as determined by the town or city, and apply the charge or rate to each occupancy as defined in this chapter; provided that the additional charge or rate shall not exceed $2 per occupancy per 24-hour period. The operator shall collect the additional surcharges imposed by this section and shall pay them over to the state as provided in this chapter.

II. The department shall pay over all revenues collected under paragraph I within a town or city as provided in RSA 78-A:26, IV.

III. Revenues paid to the town or city by the state treasurer shall be deposited in a capital reserve fund, revolving fund, or other special revenue fund as may be authorized.

IV. Any funds received under RSA 78-A:26, IV shall not be deemed part of the general fund accumulated surplus nor shall any surplus be expended for any purpose or transferred to any appropriation until such time as the legislative body shall have voted to appropriate a specific amount from said fund for a specific purpose.

78-A:6-c Local Option; Procedure.

I. Any town or city may adopt the provisions for the additional local surcharge on occupancy in the following manner:

(a) In a town, other than a town that has adopted a charter pursuant to RSA 49-D, the question shall be placed on the warrant of a special or annual town meeting, by the governing body or by petition pursuant to RSA 39:3.

(b) In a city or town that has adopted a charter pursuant to RSA 49-C or RSA 49-D, the legislative body may consider and act upon the question in accordance with its normal procedures for passage of resolutions, ordinances, and other legislation. In the alternative, the legislative body of such municipality may vote to place the question on the official ballot for any regular municipal election.

II. The vote shall specify the provisions of the additional local surcharge on occupancy under RSA 78-A:6-b, the additional charge or additional rate to be applied to each occupancy and collected by the operators licensed to collect meals and rooms taxes under RSA 78-A, and the capital reserve fund, revolving fund, or special revenue fund in which the town or city treasurer shall deposit the revenues received under RSA 78-A:26, IV. If a majority of those voting on the question vote "yes,'' the provisions of RSA 78-A:6-b shall take effect within the town or city, on the date set by the governing body in consultation with the department of revenue administration, but in no case earlier than 60 days after the vote.

III. A town or city may rescind the vote to adopt the provisions of RSA 78-A:6-b in the manner described in paragraphs I and II.

2 Tax on Meals and Rooms; Disposition of Revenue; Exception Added. Amend the introductory paragraph of RSA 78-A:26, I to read as follows:

I. Beginning on July 1, 2019, and for each fiscal year thereafter, the department shall pay over all revenue, except revenues identified in paragraphs III and IV of this section, collected under this chapter to the state treasurer. On or before September 15 of each year, the department shall determine the cost of administration of this chapter for the fiscal year ending on the preceding June 30, and it shall notify the state treasurer of these costs by a report certified by them as to correctness. After deducting the cost of administration of the chapter from the total income, the state treasurer shall distribute the net income as follows:

3 New Paragraph; Disposition of Revenue; Payment to Town or City. Amend RSA 78-A:26 by inserting after paragraph III the following new paragraph:

IV. The department shall pay over all revenue collected as additional surcharges on occupancy for a town or city pursuant to RSA 78-A:6-b to the state treasurer who shall distribute the additional surcharge to the town or city adopting such additional surcharge on occupancy at the same time as the distribution is made in subparagraph I(c).

4 Reference to Local Option Added. Amend RSA 78-A:7, III to read as follows:

III. To compensate operators for keeping the prescribed records and the proper account and remitting of taxes by them, including local option taxes, 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.

5 Effective Date. This act shall take effect July 1, 2019.