Revision: Nov. 16, 2017, 12:11 p.m.
HB 1710-FN-A - AS INTRODUCED
2018 SESSION
18-2190
10/05
HOUSE BILL 1710-FN-A
AN ACT relative to the provision allowing operators to retain a portion of meals and rooms taxes collected and the appropriation of meals and rooms tax revenues to school building aid.
SPONSORS: Rep. Cahill, Rock. 17; Rep. Burton, Straf. 6; Rep. Myler, Merr. 10; Rep. Spang, Straf. 6; Rep. DiLorenzo, Rock. 17; Sen. Fuller Clark, Dist 21
COMMITTEE: Ways and Means
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ANALYSIS
This bill changes the amount which operators may retain from meals and rooms taxes collected. The bill continually appropriates certain meals and rooms tax revenues for school building aid grants.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
18-2190
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Meals and Rooms Tax; Allowance for Operators. 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, operators are allowed to retain 3 percent not to exceed $100 per month 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.
2 Meals and Rooms Tax; Disposition of Revenue. Amend the introductory paragraph of RSA 78-A:26, I to read as follows:
I. Beginning on July 1, 1995, 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; Meals and Rooms Tax; Disposition of Revenue; School Building Aid Grants. Amend RSA 78-A:26 by inserting after paragraph III the following new paragraph:
IV. Beginning on July 1, 2018, and for each fiscal year thereafter, the department shall pay an amount equal to the difference between the total amount retained by operators under RSA 78-A:7, III and the total amount which would be realized if operators retained 3 percent of taxes due and to be remitted for deposit in the department of education school building aid fund established in RSA 198:15-a, V, for the purpose of funding school building aid grants under RSA 198:15-a.
4 School Building Aid Fund Established. Amend RSA 198:15-a, IV to read as follows:
IV. Beginning July 1, 2013, and every fiscal year thereafter, school building aid grants for construction or renovation projects approved by the department of education shall not exceed $50,000,000 per fiscal year less any debt service payments owed in the fiscal year, unless otherwise provided by an act of the general court. School building aid grants shall be funded from appropriations in the state operating budget and from the school building aid fund established in paragraph V, and no state bonds shall be authorized or issued for the purpose of funding such school building aid.
V. There is hereby established the school building aid fund to be used for the purpose of funding school building aid grants under paragraph IV. This fund shall consist of meals and rooms tax revenue paid pursuant to RSA 78-A:26, IV. This fund shall be nonlapsing and continually appropriated to the department of education.
5 New Subparagraph; Special Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (339) the following new subparagraph:
(340) Meals and rooms tax revenues collected under RSA 78-A:26, IV, which shall be deposited in the school building aid fund established under RSA 198:15-a, V.
6 Effective Date. This act shall take effect July 1, 2018.
18-2190
11/15/17
HB 1710-FN-A- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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| 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: | [ ] General [ ] Education [ ] Highway [ X ] Other - School Building Aid Fund | |||
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LOCAL: |
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Revenue | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
METHODOLOGY:
This bill amends the Meals and Rooms Tax by adjusting the amount an operator may retain for commission from 3% to 3% not to exceed $100 per month. The difference between the uncapped 3% commission and the capped commission will be deposited into a newly established School Building Aid Fund that would be nonlapsing and continually appropriated to the Department of Education. The Department of Revenue Administration states it cannot estimate what Meals and Rooms revenue and commission utilization will be in future years. The Department is able to provide the impact this legislation would have had on FY 2017. In FY 2017, retained commission for Meals and Rooms returns files was $9.1 million. Applying the capped commission proposed in this bill to the FY 2017 would have reduced the retained commission to $2.9 million resulting in $6.2 million being transferred to the School Building Aid Fund.
Assuming the moratorium is removed on the building aid program, the Department of Education states it would need to add one business administrator III position if this bill results in more than $6 million being deposited into the School Building Aid Fund. The Department assumes the costs for this position would be paid from the Fund. The estimated salary and benefits costs if this position we to begin in FY 2019 are as follows: $83,000 in FY 2019, $87,000 in FY 2020, $92,000 in FY 2021 and $96,000 in FY 2022. The Department assumes local revenue and expenditures would increase by an indeterminable amount based on aid being disbursed from the fund for local school building projects.
AGENCIES CONTACTED:
Department of Revenue Administration and Department of Education