This bill amends the existing Meals and Rooms tax law by establishing a flat tax rate of 8.5% on taxable meals and gross rental receipts for motor vehicle rentals. It repeals and reenacts certain sections of RSA 78-A:6, specifically removing the previous tax structure for meals priced under $1.00 and changing the rounding method for tax calculations to round up to the next whole nickel. Additionally, the bill clarifies that separately stated charges for highway tolls electronically billed to the vehicle owner are not included in the gross rental receipts subject to tax.

Furthermore, the bill modifies the revenue disposition timeline, changing the date for the Department of Revenue to pay collected taxes to the state treasurer from July 1, 1999, to July 1, 2027. The fiscal impact of these changes is expected to result in an indeterminable increase in revenue for the General Fund and Education Trust Fund, with an estimated annual increase of approximately $24,000 due to the new rounding method for taxable meals. The Department of Revenue Administration anticipates that the implementation of this bill will not incur additional administrative costs beyond what can be managed within its existing budget.

Statutes affected:
Introduced: 78-A:3, 78-A:26
As Amended by the House: 78-A:3, 78-A:26
HB1090 text: 78-A:3, 78-A:26