This bill amends the current taxation laws regarding meals and rooms by expanding the definition of "motor vehicle" to include vehicles designed for transport on public waterways, in addition to highways. Specifically, it adds new subparagraphs to RSA 78-A:3, VI, and IX, which now encompass charges for highway tolls that are electronically billed to the vehicle owner. The bill also repeals and reenacts RSA 78-A:6, II-III, imposing a flat tax rate of 8.5% on taxable meals and gross rental receipts for motor vehicle rentals. Additionally, it modifies the rounding rules for tax calculations, requiring that cents or fractions of cents be rounded up to the next whole nickel.

Furthermore, the bill changes the effective date for the distribution of revenue collected from these taxes to the Education Trust Fund, moving it from July 1, 1999, to July 1, 2026, while the overall effective date of the act is set for April 1, 2027. This creates a potential discrepancy that the Department of Revenue Administration suggests should be aligned to avoid complications in revenue distribution. The fiscal impact of these changes is expected to increase revenue for the Education Trust Fund by an indeterminable amount, particularly from motorboat rentals, while also requiring adjustments to operators' point of service systems to comply with the new tax collection rules.

Statutes affected:
Introduced: 78-A:3, 78-A:26
HB1090 text: 78-A:3, 78-A:26