HB15 (2021) Detail

Relative to including under the meals and rooms tax facilitators of Internet transactions of motor vehicle rentals and facilitators of Internet transactions of room occupancies.


HB 15-FN - AS INTRODUCED

 

 

2021 SESSION

21-0670

10/08

 

HOUSE BILL 15-FN

 

AN ACT relative to including under the meals and rooms tax facilitators of Internet transactions of motor vehicle rentals and facilitators of Internet transactions of room occupancies.

 

SPONSORS: Rep. Packard, Rock. 5; Rep. Major, Rock. 14; Rep. Almy, Graf. 13; Rep. Abrami, Rock. 19

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill adds and modifies definitions and requirements in the meals and rooms tax to include facilitators of Internet transactions of motor vehicle rentals and facilitators of Internet transactions of room occupancies.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

21-0670

10/08

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty One

 

AN ACT relative to including under the meals and rooms tax facilitators of Internet transactions of motor vehicle rentals and facilitators of Internet transactions of room occupancies.

 

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

 

1  Meals and Rooms Tax; Definition; Gross Rental Receipts; Motor Vehicle Rentals.  Amend the introductory paragraph of  RSA 78-A:3, VI to read as follows:

VI.  "Gross rental receipts" means value received or promised as consideration to the owner of a motor vehicle and any rental facilitator for [rental of the vehicle , but] a rental agreement, including any fee, service, or other charge or amount required to be paid by the renter as a condition for the rental agreement.  The term shall not include:

2  Definition; Operator.  Amend RSA 78-A:3, XIII to read as follows:

XIII.  "Operator" means any person operating a hotel, charging for a taxable meal, or receiving gross rental receipts, whether as owner or proprietor or lessee, or otherwise.  The term operator shall include a rental facilitator and a room facilitator.  

3  Definition; Rent; Room Facilitators Added.  Amend RSA 78-A:3, XVII(a) to read as follows:

(a)  The [consideration received] full retail price charged 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 any fee, service, or other charge required to be paid by the occupant to a room facilitator; and

4  Definition; Rental Agreement.  Amend RSA 78-A:3, XVIII to read as follows:

XVIII.  "Rental agreement" means an agreement by the owner of a motor vehicle to provide, for not longer than 180 days, the exclusive use of that motor vehicle to another for consideration, whether directly or indirectly, through a rental facilitator or otherwise.

5  New Paragraph; Definition; Rental Facilitator.  Amend RSA 78-A:3 by inserting after paragraph XVIII the following new paragraph:

XVIII-a.  "Rental facilitator" means any person having any right, access, ability, or authority to offer, reserve, book, arrange for, remarket, distribute, broker, resell, coordinate, or otherwise facilitate rental of a motor vehicle to a renter, whether directly or indirectly, through an Internet transaction or any other means whatsoever.

6  New Paragraph; Definitions; Room Facilitator.  Amend RSA 78-A:3 by inserting after paragraph XIX the following new paragraph:

XIX-a.  "Room facilitator" means any person having any right, access, ability, or authority to offer, reserve, book, arrange for, remarket, distribute, broker, resell, coordinate, or otherwise facilitate occupancy to an occupant, whether directly or indirectly, through an Internet transaction or any other means whatsoever.

7  New Subparagraphs; Collection of Tax; Rental Facilitator; Room Facilitator.  Amend RSA 78-A:7, I by inserting after subparagraph (b) the following new subparagraphs:

(c)  If the rental of a motor vehicle is offered, reserved, booked, arranged for, or otherwise facilitated in whole or in part by a rental facilitator, the rental facilitator shall demand and collect the tax from the renter.  The rental facilitator shall remit the tax to the state.

(d)  If the occupancy is offered, reserved, booked, arranged for, or otherwise facilitated in whole or in part by a room facilitator, the room facilitator shall demand and collect the tax from the occupant.  The room facilitator shall remit the tax to the state.

7  New Paragraphs; Assessment of Additional Tax; Rental Facilitator; Room Facilitator.  Amend RSA 78-A:11 by inserting after paragraph I the following new paragraphs:

I-a.  If a rental facilitator required to collect and remit a tax under this chapter fails to make a return, no assessment shall be made except against the rental facilitator.

I-b.  If a room facilitator required to collect and pay a tax under this chapter fails to make a return, no assessment shall be made except against the room facilitator.  

8  Effective Date.  This act shall take effect 60 days after its passage.

 

LBA

21-0670

12/23/20

 

HB 15-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to including under the meals and rooms tax facilitators of Internet transactions of motor vehicle rentals and facilitators of Internet transactions of room occupancies.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2021

FY 2022

FY 2023

FY 2024

   Appropriation

$0

$0

$0

$0

   Revenue

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

   Expenditures

$0

$0

$0

$0

Funding Source:

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

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

   Expenditures

$0

$0

$0

$0

 

METHODOLOGY:

This bill clarifies "operator" within the Meals and Rooms tax includes room facilitators and motor vehicle rental facilitators and that for each occupancy or motor vehicle rental being facilitated by one of these facilitators, they must collect and remit the Meals and Rooms tax to the State.  To the extent facilitators exist that do not currently collect and remit the Meals and Rooms tax when room or motor vehicle rental transactions are facilitated, General Fund and Education Trust Fund revenue will increase by an indeterminable amount.   

 

The Department of Revenue Administration indicates it could administer this change without additional expenditures.

 

The Department also states the statutory Meals and Rooms Tax distribution formula (RSA 78-A:26,II) requires an increased municipal revenue distribution if tax revenue increases, as may result from this bill's operation.  The distribution of revenue pursuant to this formula has been capped in past budget bills, including for the FY20-FY21 biennium, but the formula will be fully effective again beginning in FY22 without legislative action to suspend its operation.

 

It is assumed this bill will take effect July 1, 2021.

 

AGENCIES CONTACTED:

Department of Revenue Administration

 

Links

HB15 at GenCourtMobile
HB15 Discussion

Action Dates

Date Body Type
Jan. 28, 2021 House Hearing
March 2, 2021 House Exec Session
March 3, 2021 House Exec Session

Bill Text Revisions

HB15 Revision: 31545 Date: Jan. 9, 2021, 1:49 p.m.

Docket


March 3, 2021: Full Committee Work Session: 03/03/2021 09:00 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/92309184005 / Executive session on pending legislation may be held throughout the day (time permitting) from the time the committee is initially convened.


March 2, 2021: Full Committee Work Session: 03/02/2021 09:00 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/94528213728 / Executive session on pending legislation may be held throughout the day (time permitting) from the time the committee is initially convened.


Jan. 28, 2021: Public Hearing: 01/28/2021 01:30 pm Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/92120368845 / Executive session on pending legislation may be held throughout the day (time permitting) from the time the committee is initially convened.


Jan. 6, 2021: Introduced (in recess of) 01/06/2021 and referred to Ways and Means HJ 2 P. 47