SB 99-FN-LOCAL - AS INTRODUCED
2021 SESSION
21-0889
10/05
SENATE BILL 99-FN-LOCAL
AN ACT relative to the amount of meals and rooms tax revenue that is distributed to
municipalities.
SPONSORS: Sen. Ricciardi, Dist 9; Rep. Abrami, Rock. 19; Sen. Bradley, Dist 3; Sen. Carson,
Dist 14; Sen. Hennessey, Dist 1; Sen. Avard, Dist 12; Sen. Gannon, Dist 23; Rep.
Kelsey, Hills. 7
COMMITTEE: Ways and Means
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ANALYSIS
This bill removes the annual increase limit on the distribution of the meals and rooms tax
revenues to municipalities so that 40 percent of net revenues is distributed annually.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
 SB 99-FN-LOCAL - AS INTRODUCED
21-0889
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
AN ACT relative to the amount of meals and rooms tax revenue that is distributed to
municipalities.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 1 Repeal. RSA 78-A:26, II, relative to the limit on meals and rooms tax distribution of revenues,
2 is repealed.
3 2 Effective Date. This act shall take effect July 1, 2021.
 LBA
21-0889
Revised 2/5/21
SB 99-FN-LOCAL- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the amount of meals and rooms tax revenue that is distributed to
municipalities.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
Estimated Increase / (Decrease)
STATE: FY 2021 FY 2022 FY 2023 FY 2024
Appropriation $0 $0 $0 $0
Indeterminable Indeterminable Indeterminable
Revenue $0
Decrease Decrease Decrease
Indeterminable Indeterminable Indeterminable
Expenditures $0
Increase Increase Increase
Funding Source: [ X ] General [ ] Education [ ] Highway [ ] Other
LOCAL:
Indeterminable Indeterminable Indeterminable
Revenue $0
Increase Increase Increase
Expenditures $0 $0 $0 $0
METHODOLOGY:
This bill would repeal RSA 78-A:26, II that places a limit on the year to year increase on the
distribution of Meals and Rentals revenue back to municipalities, allowing for the full 40 percent
of the net income as established in RSA 78-A:26,I(c ) to be distributed back to municipalities.
The Treasury Department is responsible for distributing these funds back to municipalities. The
Department's expenditures and local revenue will increase by an indeterminable amount as a
result of this bill. Though the Department is not able to predict the exact fiscal impact of this
bill, the Department is able to demonstrate the impact of this bill if it had been in effect for FY
2021 using the following assumptions:.
A. Fiscal Year 2020 Meals & Rooms Tax Revenues (unaudited) $325,290,451
B. (-) Cost of Meals & Rooms Administration ($2,595,532)
C. (-) Funds intended for Education Trust Fund ($8,700,000)
Fiscal Year 2020 Meals & Rooms Tax Revenues Net of Authorized
D. Expenditures $313,994,919
E. 40% per RSA 78-A:26, I(c) 40%
F. Total Amount to Be Distributed $125,597,968
G. Total Amount Distributed in Fiscal Year 2021 $68,805,057
H. Increase/(Decrease) $56,792,911
 The Department of Revenue Administration states increasing the Meals and Rooms distribution
to municipalities will result in an indeterminable decrease in State General Fund revenue and
an increase in local revenue.
It should be noted that since the FY 2010-2011 biennium, the Legislature has frozen the
distribution formula contained in RSA 78-A:26 and directly appropriated the amount to be
distributed back to the municipalities.
AGENCIES CONTACTED:
Department of Revenue Administration and Treasury Department


Statutes affected:
Introduced: 78-A:26
Ought to Pass: 78-A:26
latest version: 78-A:26