This bill proposes a reduction in the percentage of meals and rooms taxes that operators are allowed to retain from 3% to 1.5%. The amendment to RSA 78-A:7, III specifies that operators can retain this reduced percentage of taxes due if their returns and payments are timely submitted to the Department of Revenue Administration. The effective date for this change is set for July 1, 2026.

The fiscal impact of this bill is projected to result in an indeterminable increase in revenue for the General Fund and Education Trust Fund, as well as the M&R Municipal Revenue Fund. Based on FY 2025 data, if the operator commission had been reduced to 1.5%, it is estimated that the state would have seen an increase in revenue of approximately $6.4 million, with $6.3 million going to the General Fund and $0.1 million to the Education Trust Fund. The bill is expected to lead to increased revenue for municipalities starting in FY 2028, with estimates suggesting a revenue increase of around $1.7 million in that year.

Statutes affected:
Introduced: 78-A:7
HB1063 text: 78-A:7