SB 434-FN - AS INTRODUCED
2024 SESSION
24-2992
02/06
SENATE BILL 434-FN
SPONSORS: Sen. Abbas, Dist 22; Sen. Watters, Dist 4; Sen. Murphy, Dist 16; Rep. Doucette, Rock. 25; Rep. Abare, Hills. 1
COMMITTEE: Ways and Means
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ANALYSIS
This bill creates the extended stay housing program which provides exemptions to the rooms and meals tax.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2992
02/06
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; Exception to Tax; Occupancy; Extended Stay Housing Program. Amend RSA 78-A:6-d by inserting after paragraph IX the following new paragraph:
X. Lodging businesses for the duration of an occupant's stay in rooms reserved specifically for the extended stay housing program established under RSA 78-A:6-e.
2 New Section; Extended Stay Housing Program. Amend RSA 78-A by inserting after section 6-d the following new section:
78-A:6-e Extended Stay Housing Program.
I. There is hereby established an extended stay housing program, providing an exemption to the rooms and meals tax pursuant to RSA 78-A:6-d, X.
II. Nothing in this section shall grant tenants’ rights to any individuals occupying a unit on the property, and the lodging business reserves the right to remove any individuals for non-payment, violations of its rules under RSA 353:3-c, or if the lodging business opts out of the extended stay housing program.
III. Lodging business owners may elect, but cannot be compelled by the state, county or municipal subdivisions, to participate in the extended stay housing program by meeting the following criteria:
(a) Submit a completed application form to the department of revenue administration;
(b) No more than 25 percent of regularly available lodging rooms can be assigned to the program;
(c) Monthly rental fee can be no more than 125 percent of estimated affordable monthly rent per RSA 674:58; and
(d) An agreement between the lodging business and an employer; or a lodging business and an individual be in place expressing intent to use the exempt room as an extended stay residence.
IV. The department of revenue administration is authorized to develop rules to implement this program in accordance with RSA 541-A.
3 Repeal. The following are repealed:
I. RSA 78-A:6-d, X, relative to the extended stay housing program exception to the rooms and meals tax.
II. RSA 78-A:6-e, relative to the establishment of the extended stay housing program.
I. Sections 1 and 2 of this act shall take effect July 1, 2024.
II. The remainder of this act shall take effect July 1, 2026.
24-2992
12/4/23
SB 434-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | Indeterminable Decrease | Indeterminable Decrease | Indeterminable Decrease | ||
Revenue Fund(s) | General Fund
| |||||
Expenditures | $0 | $0 | Indeterminable Decrease | Indeterminable Decrease | ||
Funding Source(s) | M&R Municipal Revenue Fund
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Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None
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• Does this bill provide sufficient funding to cover estimated expenditures? [X] Yes • Does this bill authorize new positions to implement this bill? [X] N/A | ||||||
Estimated Political Subdivision Impact - Increase / (Decrease) | ||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 |
County Revenue | $0 | $0 | $0 | $0 |
County Expenditures | $0 | $0 | $0 | $0 |
Local Revenue | $0 | $0 | Indeterminable Decrease | Indeterminable Decrease |
Local Expenditures | $0 | $0 | $0 | $0 |
METHODOLOGY:
This bill seeks to establish an Extended Stay Housing Program within the Meals and Room (M&R) tax statute and exempts businesses participating in the Extended Stay Housing Program from the M&R tax. To be eligible for the Extended Stay Housing Program, a business electing to participate would need to meet the following conditions:
The Department assumes it would develop the application form and that the estimated affordable monthly rent would be computed by local municipalities and provided to the Department. The Department also assumes that since the exemption from the M&R tax is effective July 1, 2024 and the program is repealed July 1, 2026, that the start of the exemption will begin on or after July 1, 2024 and end on June 30, 2026. The Department does not anticipate the development of an application, updating tax forms and updating the electronic payment system to reflect the changes in this bill will result in any additional administrative costs that could not be absorbed in the Department's operating budget.
It should be noted that M&R tax revenue is due by the 15th day of the month following the month the tax is collected. Therfore any fiscal impact on revenue from this bill will begin August 2024. The Department is not able to calculate a fiscal impact for this bill as it does not have information on the number of lodging businesses that would participate in the program or data on the number of days an occupant occupies any room. To the extent there is participating in this program and M&R tax is excluded, there would be an indeterminable decrease in General Fund revenue in FY 2025 through the first month of FY 2027 (June revenue in FY 2026 would not be reported until July (FY 2027)). As M&R revenue decreases, there would be an indeterminable decrease in the amount transferred to the M&R Municipal Revenue Fund, and the amount sent to municipalities.
AGENCIES CONTACTED:
Department of Revenue Administration
| Date | Body | Type |
|---|---|---|
| Jan. 24, 2024 | Senate | Hearing |
| March 7, 2024 | Senate | Floor Vote |
March 7, 2024: Inexpedient to Legislate, MA, VV === BILL KILLED ===; 03/07/2024; SJ 6
Feb. 21, 2024: Committee Report: Inexpedient to Legislate; Vote 5-0; CC; 03/07/2024; SC 9
Jan. 10, 2024: Hearing: 01/24/2024, Room 100, SH, 09:45 am; SC 3
Dec. 12, 2023: To Be Introduced 01/03/2024 and Referred to Ways and Means; SJ 1