SB 128-FN-A-LOCAL - AS AMENDED BY THE SENATE
03/11/2021 0550s
2021 SESSION
21-0967
10/04
SENATE BILL 128-FN-A-LOCAL
AN ACT relative to a temporary change to operator compensation under the meals and rooms tax.
SPONSORS: Sen. Rosenwald, Dist 13; Sen. Watters, Dist 4; Sen. Cavanaugh, Dist 16; Sen. D'Allesandro, Dist 20; Sen. Soucy, Dist 18; Sen. Reagan, Dist 17; Sen. Hennessey, Dist 1; Sen. Prentiss, Dist 5; Sen. Sherman, Dist 24; Rep. Bartlett, Merr. 19; Rep. M. Griffin, Rock. 7; Rep. Leishman, Hills. 24; Rep. Loughman, Rock. 21; Rep. McMahon, Rock. 7
COMMITTEE: Ways and Means
─────────────────────────────────────────────────────────────────
AMENDED ANALYSIS
This bill temporarily adjusts for the fiscal year ending June 30, 2022 the amount of meals and rooms tax revenue on taxable meals and on room rentals that an operator is allowed to retain as compensation for collecting the tax.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/11/2021 0550s 21-0967
10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
AN ACT relative to a temporary change to operator compensation 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; Temporary Adjustment of Operator Retained Percentage; Taxable Meals; Room Rentals. For the fiscal year ending June 30, 2022, to compensate an operator licensed under RSA 78-A:4 who sells taxable meals or who rents rooms, for keeping the prescribed records and the proper account and remitting of taxes by them, operators selling a taxable meal or charging rent for an occupancy, who collect taxes under RSA 78-A:6, I or II, shall be allowed to retain 5 percent of the taxes due and to be remitted, instead of 3 percent, if the return and payment are timely received by the department of revenue administration, as provided in RSA 78-A:8, III.
2 Effective Date. This act shall take effect July 1, 2021.
21-0967
Amended 3/19/21
SB 128-FN-A-LOCAL- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2021-0550s)
AN ACT relative to a temporary change to operator compensation under the meals and rooms tax.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
|
| |||
| Estimated Increase / (Decrease) | |||
STATE: | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | Indeterminable Decrease | $0 | $0 |
Expenditures | $0 | $0 | $0 | $0 |
Funding Source: | [ X ] General [ X ] Education [ ] Highway [ ] Other | |||
|
|
|
|
|
LOCAL: |
|
|
|
|
Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | Indeterminable | $0 | $0 |
METHODOLOGY:
This bill increases the amount retained by operators who sell taxable meals and rooms from 3 percent to 5 percent of the Meals & Rentals taxes due for the fiscal year ending June 30, 2022 if the return and payment are timely received by the Department.
The Department of Revenue Administration is not able to determine the exact impact of the proposed bill because the Department does not know how much total revenues will come from the M&R tax in future years. The Department is able to provide an estimate of the fiscal impact of this bill using M&R data reported by M&R operators in FY 2020. Of the 7,820 M&R operators, 5,730 claimed the 3 percent commission for selling taxable meals and rooms. In FY 2020, the 5.730 M&R operators claimed a total of $9,067,329 in commissions at the 3 percent rate. If this same group of M&R operators had claimed 5 percent commission on the taxable meals sold in FY 2020, they would have claimed $15,791,101 in commission, an increase of $6,723,772.
The Department states this bill may result in an indeterminable decrease in revenue distributed back to the communities pursuant to RSA 78-A:26 in FY 2022. RSA 78-A26, II states "Each fiscal year, the amount to be distributed shall be equal to the prior year's distribution plus an amount equal to 75 percent of any increase in the income received from the meals and rooms tax for the fiscal year ending on the preceding June 30, not to exceed $5,000,000..." (emphasis added), if the increase in the operator commission results in less of an increase in the amount of revenue that would otherwise have been distributed absent this bill, then it would result in a decrease in revenue to the municipalities. It should also be noted that the Legislature has limited the distribution of aid under RSA 78-A:26. I and II every biennium since FY 2010-2011, to a specific amount.
AGENCIES CONTACTED:
Department of Revenue Administration
| Date | Body | Type |
|---|---|---|
| Feb. 8, 2021 | Senate | Hearing |
| March 11, 2021 | Senate | Floor Vote |
| Feb. 8, 2021 | Senate | Hearing |
| March 11, 2021 | Senate | Floor Vote |
Jan. 5, 2022: Inexpedient to Legislate, Senate Rule 3-23, Adjournment 06/24/2021; SJ 20
March 11, 2021: Pending Motion Refer to Finance Rule 4-5; 03/11/2021; SJ 7
March 11, 2021: Pending Motion Refer to Finance Rule 4-5; 03/11/2021; SJ 7
March 11, 2021: Sen. Giuda Moved Laid on Table, RC 24Y-0N, MA; 03/11/2021; SJ 7
March 11, 2021: Sen. Giuda Moved Laid on Table, RC 24Y-0N, MA; 03/11/2021; SJ 7
March 11, 2021: Ought to Pass with Amendment 2021-0550s, RC 22Y-2N, MA; 03/11/2021; SJ 7
March 11, 2021: Ought to Pass with Amendment 2021-0550s, RC 22Y-2N, MA; 03/11/2021; SJ 7
March 11, 2021: Committee Amendment # 2021-0550s, RC 24Y-0N, AA; 03/11/2021; SJ 7
March 11, 2021: Committee Amendment # 2021-0550s, RC 24Y-0N, AA; 03/11/2021; SJ 7
March 11, 2021: Committee Report: Ought to Pass with Amendment # 2021-0550s, 03/11/2021; SC 14
March 1, 2021: Committee Report: Ought to Pass with Amendment # 2021-0550s, 03/11/2021; SC 14
Feb. 3, 2021: Remote Hearing: 02/08/2021, 10:00 am; Links to join the hearing can be found in the Senate Calendar; SC 10
Feb. 8, 2021: Remote Hearing: 02/08/2021, 10:00 am; Links to join the hearing can be found in the Senate Calendar; SC 10
Feb. 3, 2021: Introduced 01/06/2021 and Referred to Ways and Means; SJ 3
Jan. 6, 2021: Introduced 01/06/2021 and Referred to Ways and Means; SJ 3