This bill proposes an increase in the meals and rooms tax rate from 8.5% to 9%. Specifically, it amends RSA 78-A:6 to reflect this change, with the deletion of the previous rate of 8.5% and the insertion of the new rate of 9% for both occupancy taxes and the tax on taxable meals over $1.00. The bill also establishes that the operator is responsible for collecting these taxes and remitting them to the state as outlined in the existing law. The effective date for this tax increase is set for 60 days after the bill's passage.

The fiscal impact of this bill is projected to increase revenue for the General Fund and the Education Trust Fund, although the exact amount is indeterminable at this time. Based on FY 2025 data, the Department of Revenue Administration estimates that the increase in the meals and rooms tax rate could yield an additional $20.9 million in revenue for FY 2026, with further increases in subsequent years. However, the distribution of this revenue to municipalities through the Meals and Rooms Municipal Revenue Fund will not be immediately affected in the first fiscal year following the rate increase, as it is based on prior year revenue. The bill also anticipates that the Department will need to update its forms and electronic systems to accommodate the new tax rate, but it expects to manage these costs within its existing budget.

Statutes affected:
Introduced: 78-A:6
HB1480 text: 78-A:6