HB1191 (2024) Detail

Relative to the establishment of an exemption to the meals and rooms tax for participants in the restaurant voucher program.


HB 1191-FN - VERSION ADOPTED BY BOTH BODIES

 

 

2024 SESSION

24-2023

12/05

 

HOUSE BILL 1191-FN

 

AN ACT relative to the establishment of an exemption to the meals and rooms tax for participants in the restaurant voucher program.

 

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

 

-----------------------------------------------------------------

 

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.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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

 

AN ACT relative to the establishment of an exemption to the meals and rooms tax for participants in the restaurant voucher program.

 

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.

 

LBA

24-2023

11/29/23

 

HB 1191-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the establishment of an exemption to the meals and rooms tax for participants in the restaurant voucher program.

 

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

 

 

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

 

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

 

 

 

$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

 

Links


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
May 16, 2024 Senate Floor Vote
May 15, 2024 Senate Floor Vote
May 23, 2024 Senate Floor Vote

Bill Text Revisions

HB1191 Revision: 42245 Date: May 22, 2024, 3:09 p.m.
HB1191 Revision: 39672 Date: Dec. 1, 2023, 3:02 p.m.

Docket


May 22, 2024: Ought to Pass: MA, VV; OT3rdg; 05/22/2024; SJ 14


May 15, 2024: Committee Report: Ought to Pass, 05/22/2024, Vote 5-1; SC 20


May 15, 2024: Special Order to next week, Without Objection, MA; 05/15/2024; SJ 12


May 1, 2024: Committee Report: Ought to Pass, 05/16/2024, Vote 5-1; SC 19


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