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 language that states the budget shall be funded at no less than 3.15 percent of the net income identified by RSA 78-A:26, I, plus the income identified under RSA 78-A:26, III, for the most recently completed fiscal year. This change effectively adds back the transfer to the Municipal Revenue Fund to the net income calculation, which is intended to increase 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. However, it is estimated that the adjustment in the calculation could increase the Division's funding significantly; for example, 3.15% of the net income from FY 2024 M&R Tax revenue was approximately $10.2 million, but with the new calculation including the Municipal Revenue Fund transfer, it could rise to about $14.3 million. The bill is set to take effect 60 days after its passage, but it is assumed that its financial implications will not be realized until the FY 2028-2029 operating budget is developed.

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