HB1579 (2020) Detail

Relative to collection of tax for short-term rentals under the meals and rooms tax.


HB 1579-FN - AS INTRODUCED

 

 

2020 SESSION

20-2717

10/05

 

HOUSE BILL 1579-FN

 

AN ACT relative to collection of tax for short-term rentals under the meals and rooms tax.

 

SPONSORS: Rep. Kanzler, Carr. 2; Rep. Burroughs, Carr. 1

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill modifies the percentage retained by an operator of a short-term rental under the meals and rooms tax and credits the revenue to the affordable housing fund.  The provisions of the bill are repealed in 5 years.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2717

10/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT relative to collection of tax for short-term rentals under the meals and rooms tax.

 

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

 

1  Meals and Rooms Tax; Short-Term Rentals; Compensation for Collection of Tax.  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] a percentage 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.  The amount which may be retained shall be 1.5 percent for a short-term rental occupancy and 3 percent for any other occupancy, taxable meal, or gross rental receipt.

2  Distribution of Funds; Affordable Housing Fund.  Amend RSA 78-A:26, I(d) to read as follows:

(d)  An amount equal to 1.5 percent of the taxes collected for short-term rental occupancies shall be credited to the affordable housing fund established by RSA 204-C:57.

(e) The remainder to the general fund.

3  2025; Meals and Rooms Tax; Compensation for Collection of Tax.  RSA 78-A:7, III is repealed and reenacted to read as follows: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 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.

4  2025; Distribution of Funds; Affordable Housing Fund.  Amend 78-A:26, I(d) and (e) to read as follows:

(d)  [An amount equal to 1.5 percent of the taxes collected for short-term rental occupancies shall be credited to the affordable housing fund established by RSA 204-C:57.

(e)]  The remainder to the general fund.

5  Effective Date.

I.  Sections 3 and 4 of this act shall take effect July 1, 2025.

II.  The remainder of this act shall take effect July 1, 2020.

 

LBAO

20-2717

11/22/19

 

HB 1579-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to collection of tax for short-term rentals under the meals and rooms tax.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

$0

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

   Expenditures

$0

$0

$0

$0

Funding Source:

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

 

 

 

 

 

METHODOLOGY:

This bill reduces the Meals and Rooms Tax compensation for collection of the tax on short-term rental occupancy from 3 percent to 1.5 percent and directs an amount equal to 1.5 percent of the taxes collected for short-term rental occupancies to the Affordable Housing Fund established by RSA 204-C:57 effective July 1, 2020.  These changes are repealed July 1, 2025.  The Department of Revenue Administration assumes the applicability date for these changes to the Meals and Rooms Tax will be for taxable periods beginning on or after July 1, 2020.  The Department does not distinguish short-term rental occupancy from other occupancies therefore the decrease in general fund revenue resulting from this bill cannot be determined.

 

 The New Hampshire Housing Finance Authority has no information on the amount of revenue that will go to the Affordable Housing Fund to determine the increased expenditures from the fund.  Any increased revenue to the fund will allow for increased expenditures for the purpose facilitating the purchase and rehabilitation or construction of affordable housing primarily for low and moderate income persons and families and for pre-construction technical assistance to entities which undertake such efforts.

 

AGENCIES CONTACTED:

Department of Revenue Administration and New Hampshire Housing Finance Authority

 

 

Links

HB1579 at GenCourtMobile
HB1579 Discussion

Action Dates

Date Body Type
Jan. 22, 2020 House Hearing
Feb. 4, 2020 House Exec Session
House Floor Vote
Feb. 19, 2020 House Floor Vote

Bill Text Revisions

HB1579 Revision: 7219 Date: Dec. 3, 2019, 11:49 a.m.

Docket

Date Status
Jan. 8, 2020 Introduced 01/08/2020 and referred to Ways and Means HJ 1 P. 27
Jan. 22, 2020 Public Hearing: 01/22/2020 10:00 am LOB 202
Feb. 4, 2020 Executive Session: 02/04/2020 01:00 pm LOB 202
Feb. 19, 2020 Committee Report: Inexpedient to Legislate for 02/19/2020 (Vote 20-0; CC) HC 7 P. 17
Committee Report: Inexpedient to Legislate (Vote 20-0; CC)
Feb. 19, 2020 Inexpedient to Legislate: MA VV 02/19/2020