Jamie Guth

I write as a resident of Belknap County, where I manage a short-term rental (STR) property that I also live in half the year. While I would not be affected by this bill now, I could in the future if I decide that I have to live elsewhere due to my age and I cannot keep up the property, but need to rent it more frequently for income. Or if I give it to my children who live away, they would be penalized by this, affecting the value of their inheritance. I acknowledge the need to address the heavy weight of funding schools and local services in this state, which is dependent on property taxes. This bill adds further to that burden of already high property taxes, and could also impact tourism. As you already know, tourism is the second-largest revenue-generating industry in the state, crucial for jobs and local business activity. Every year, it attracts more than14 million visitors and $7.5 billion in spending, generates 70,000 jobs and provides substantial tax revenue. We have very limited data that is useful in establishing the value of this surcharge. What we do know is that STRs make up about 2–3% of total housing units statewide—but in high-tourism counties like Carroll, Coös, Belknap, Grafton, they account for 8–13% or more of housing units (NH Housing Report: https://www.nhpr.org/nh-news/2023-10-06/new-report-finds-short-term-rentals-in-nh-squeezed-vacancy-rate-but-not-rents?utm_source). Consequently, this new taxation surcharge could have dramatic effects, but the true impact is unknown due to lack of complete data, and no evidence-based analysis or modeling on the true amount of taxes that could be raised, nor the cost to implement this measure. A few key questions: • What is the potential impact on property values? Would people with these affected properties be forced to sell, reducing property values if many of them have to do this? Would this reduce the amount of property taxes raised? • Will this measure raise meaningful levels of sustainable funding? Modeling is required for both the first year and succeeding years as owners potentially sell their properties. • What is the potential impact on related hotel taxes that these properties remit? What amount of taxes do these properties currently generate that may be lost? • What is the potential impact on STR rates? Will they go up and what affect would that have on occupancy rates and tourism? • Why is there no corresponding effort to tax at a higher rate other vacation properties fitting these conditions, such as hotels and resorts? What is the reason for taxing only one type of vacation property? To start to answer these questions, we need data on: • The true number of properties that could be affected by this. • The precise percentage of total tourism spending or GDP attributable to STR guest nights specifically. • The share of meals & rentals tax revenue that comes solely from STR bookings vs. hotels/inns/campgrounds. We also need more financial modelling to determine the low and high impacts of this bill. In summary, I understand the need to better fund local schools and services, but I do not see the data or analysis to demonstrate that HB 1580 does this. I also see the potential for significant negative impacts that are not even considered in this bill. I strongly recommend voting no for HB1580. If there is interest in considering this type of tax, then please conduct further research and analysis to determine the true impact. Thank you for the opportunity to provide my input into this proposed bill.