HB 1191-FN - AS INTRODUCED
2024 SESSION
24-2023
12/05
HOUSE BILL 1191-FN
SPONSORS: Rep. Healey, Hills. 12; Rep. Mooney, Hills. 12; Rep. Rung, Hills. 12; Rep. Wallner, Merr. 19; Rep. N. Murphy, Hills. 12; Sen. Chandley, Dist 11; Sen. Lang, Dist 2
COMMITTEE: Ways and Means
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ANALYSIS
This bill exempts taxation on meals consumed at or provided by a restaurant, café, or other food service establishment that are redeemed through the bureau of elderly and adult services restaurant voucher program.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2023
12/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Exemption to Meals and Rooms Tax; Restaurant Voucher Program. Amend RSA 78-A:6-c by inserting after paragraph X the following new paragraph:
XI. Meals consumed at or provided by a restaurant, café or other food service establishment that are redeemed through the bureau of elderly and adult services restaurant voucher program.
2 Effective Date. This act shall take effect July 1, 2024.
24-2023
11/29/23
HB 1191-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | Indeterminable Decrease ($86,000 to $172,000) | Indeterminable Decrease ($86,000 to $172,000) | Indeterminable Decrease ($86,000 to $172,000) | ||
Revenue Fund(s) | General Fund
| |||||
Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable | ||
Funding Source(s) | General Fund Meals and Rooms Municipal Revenue Fund | |||||
Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None
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• Does this bill provide sufficient funding to cover estimated expenditures? [X] No • Does this bill authorize new positions to implement this bill? [X] No | ||||||
METHODOLOGY:
This bill exempts meals consumed at or provided by a restaurant, café, or other food service establishments that are part of the restaurant voucher program from the Meals and Rooms Tax. The Department of Health and Human Services, Bureau of Elderly and Adult Services (Department) contracts with agencies to provide congregate and home delivered meals to individuals eligible for Older AMericans Act services. These contract agencies worked with the Department to implement the Restaurant Voucher Program. The contract agencies subcontract with food service establishments to provide meals that comply with the Older Americans Act requirements. The Restaurant Voucher Program guidance does not dictate how the Meals and Rooms tax is paid for meals provided. Contract agencies that enroll in the Restaurant Voucher Program could cover the costs of the tax from funding received from the Department or pass the cost of the tax on to individuals when the meal is provided.
The Department contacted two contract agencies currently enrolled in the Restaurant Voucher Program for more information. Both contract agencies cover the cost of the Meals and Rooms Tax. The table below provides information on the tax impact:
| A | B | C | D |
| Number of Meals Per Year | Cost Per Meal | M&R Tax Rate | Total M&R Tax for Meals Provided (Col A*Col B*Col C) |
Contract Agency 1 | 9,000 | $12.00 | 8.5% | $9,180 |
Contract Agency 2 | 69,000 | $13.00 | 8.5% | $76,245 |
Total Fiscal Impact |
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| $85,425 |
The Department assumes the M&R Tax revenue to the General Fund may decrease by approximately $86,000 a year based on the current contracts. The Department indicates the fiscal impact could be as high as $172,000 a year if the Restaurant Voucher Program doubles in size with more meals being provided through the existing contract agencies or new contract agencies participate in the program.
The Department of Revenue Administration does not have any data to estimate the impact of this bill as the program data resides with the Department of Health and Human Services. The Department does state any M&R tax not collected on a meal will decrease State General Fund revenue and any transfer to the Meals and Rooms Municipal Revenue Fund by an indeterminable amount. The Department would need to update all necessary tax return forms and electronic management systems to reflect the changes contained in this bill; however, it is not anticipated this will result in any additional administrative costs that could not be absorbed in the Department's operating budget.
AGENCIES CONTACTED:
Department of Health and Human Services and Department of Revenue Administration
| Date | Body | Type |
|---|---|---|
| Jan. 9, 2024 | House | Hearing |
| Feb. 6, 2024 | House | Exec Session |
| Feb. 6, 2024 | House | Floor Vote |
| April 3, 2024 | Senate | Hearing |
| April 10, 2024 | Senate | Hearing |
| April 18, 2024 | Senate | Floor Vote |
April 18, 2024: Ought to Pass: MA, VV; Refer to Finance Rule 4-5; 04/18/2024; SJ 10
April 10, 2024: Committee Report: Ought to Pass, 04/18/2024, Vote 3-0; SC 15
March 27, 2024: Hearing: 04/10/2024, Room 100, SH, 09:30 am; SC 13
March 27, 2024: Hearing: 04/03/2024, Room 100, SH, 09:30 am; SC 13
March 27, 2024: ==CANCELLED== Hearing: 04/03/2024, Room 100, SH, 09:30 am;
March 6, 2024: Introduced 02/21/2024 and Referred to Ways and Means; SJ 6
Feb. 22, 2024: Ought to Pass: MA VV 02/22/2024 HJ 6
Feb. 9, 2024: Committee Report: Ought to Pass 02/06/2024 (Vote 20-0; CC)
Jan. 31, 2024: Executive Session: 02/06/2024 01:00 pm LOB 202-204
Jan. 31, 2024: Full committee Work Session: 02/05/2024 10:00 am LOB 202-204
Jan. 5, 2024: Public Hearing: 01/09/2024 11:00 am LOB 202-204
Dec. 1, 2023: Introduced 01/03/2024 and referred to Ways and Means