This bill amends the funding structure for the Division of Travel and Tourism by modifying the calculation of the Meals and Rooms Tax (M&R) revenue used to determine its budget. Specifically, it introduces new legal language that adds the income identified under RSA 78-A:26, III to the existing calculation of net income from the M&R tax, which is currently set at no less than 3.15 percent. The current law deducts costs associated with administering the M&R tax and transfers to the Education Trust Fund and the Municipal Revenue Fund from the net income. The proposed change allows the transfer to the Municipal Revenue Fund to be added back into the net income calculation, thereby increasing the funding available for the Division.

The fiscal impact of this bill is projected to be indeterminable, as it does not provide new funding or authorize new positions. The Department of Revenue Administration estimates that the adjustment could increase the Division's funding from approximately $10.2 million to $14.3 million based on FY 2024 M&R tax revenue, representing an increase of $4.1 million. However, the bill is not expected to take effect until after FY 2025, meaning any financial implications will likely be realized in the FY 2028-2029 operating budget.

Statutes affected:
Introduced: 12-O:11-b