Revision: June 2, 2021, 3:57 p.m.
Sen. Giuda, Dist 2
June 1, 2021
2021-1820s
10/05
Floor Amendment to HB 15-FN
Amend the title of the bill by replacing it with the following:
AN ACT relative to including under the meals and rooms tax facilitators of Internet transactions of motor vehicle rentals.
Amend the bill by replacing all after the enacting clause with the following:
1 Meals and Rooms Tax; Definition; Gross Rental Receipts; Motor Vehicle Rentals. Amend 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:
(a) Separately stated charges for insurance;
(b) Charges for damages to the motor vehicle occurring during the rental agreement period;
(c) Separately stated charges for motor fuel sold by the owner of the motor vehicle[.];
(d) Amounts paid by an operator to a travel agent as commission or compensation for the travel agent’s services.
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.
3 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.
4 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:
(a) Offer, reserve, book, arrange for, remarket, distribute, broker, resell, coordinate, or otherwise facilitate the rental of an operator’s motor vehicle to a renter through an Internet transaction or any other means whatsoever; and
(b) Collect gross rental receipts from the renter either directly or indirectly through contracts, agreements, or other arrangements with third parties.
5 New Paragraphs; Collection of Tax; Rental Facilitator. Amend RSA 78-A:7 by inserting after paragraph I the following new paragraphs:
I-a. Except as provided in paragraph I-b, 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 and remit the tax to the state.
I-b. A rental facilitator shall be relieved of liability for failure to collect and remit the correct amount of tax to the extent that the error was due to incorrect or insufficient information on the nature of the motor vehicle or occupancy given to the facilitator by the operator, provided that the rental facilitator can demonstrate it made a reasonable effort to obtain correct and sufficient information from the operator. Provided, however, this paragraph shall not apply if the rental facilitator and the operator are related.
I-c.(a) Nothing in this section shall prohibit the rental facilitator and the operator from agreeing to have the operator collect and remit the tax in full or on its portion of each rental transaction where the operator:
(1) Had over $75,000 in meals and rooms taxable revenue in the prior calendar year;
(2) Provides evidence to the rental facilitator that it is registered with the department under RSA 78-A:4, I; and
(3) Makes an election by notifying the department in a manner prescribed by the department that it:
(A) Meets the requirements of this paragraph; and
(B) Will collect and remit all taxes due in full or on its portion of each rental transaction and is liable for failure to collect or remit such taxes or make a return.
(b) Notwithstanding paragraph I-a, if the operator makes such an election, the operator shall be solely responsible for collecting and remitting the taxes imposed by this chapter and filing returns, whether in full or on its portion of each rental transaction. In the case of an election where the operator will collect and remit the tax on its portion of each rental transaction, the rental facilitator shall be responsible for collecting and remitting the tax on any fee, service, or other charge or amount required to be paid by the renter to the rental facilitator.
(c) An election under this paragraph shall remain in effect until the rental facilitator and the operator both notify the department of the termination of the election in a manner prescribed by the department.
I-d. The department shall solely audit a rental facilitator for rentals facilitated by the rental facilitator except with respect to transactions that are subject to paragraph I-c. The department will not audit or otherwise assess tax, interest, or penalties due against non-facilitator operators for rentals facilitated by a rental facilitator except to the extent the rental facilitator seeks relief under paragraph I-b or with respect to transactions that are subject to paragraph I-c.
6 New Paragraph; Assessment of Additional Tax; Rental Facilitator. Amend RSA 78-A:11 by inserting after paragraph I the following new paragraph:
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.
7 Effective Date. This act shall take effect October 1, 2021.
2021-1820s
AMENDED 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.