David Preece

Dear Chair and Members of the Committee, I write in strong support of HB 1068, which modernizes New Hampshire’s Meals and Rooms Tax statutes to reflect how lodging is actually provided in today’s economy. For years, traditional hotels, motels, inns, and bed-and-breakfasts have played by clear rules. They collect and remit the Meals and Rooms Tax, comply with safety and zoning standards, and contribute to the state revenue that supports tourism, local services, and infrastructure. Meanwhile, a rapidly expanding short-term rental market—operating through online platforms and private listings—has increasingly occupied the same space without clear statutory treatment. HB 1068 fixes that inequity. By clarifying the definitions of “hotel,” “occupant,” “occupancy,” “operator,” and “short-term rental,” this bill ensures that functionally identical lodging is taxed in the same way, regardless of whether a room is rented through a front desk or an app. That is basic tax fairness. This bill does not create a new tax. It simply ensures that the existing Meals and Rooms Tax is applied consistently across all short-term lodging arrangements. When some operators avoid the tax through outdated definitions, the burden shifts onto compliant businesses and local taxpayers. HB 1068 closes those loopholes and restores a level playing field. It also protects state revenue. The Meals and Rooms Tax is a major funding source for education, tourism promotion, and municipal aid. When short-term rentals are left outside the statute, the state loses millions of dollars that must be made up elsewhere—often through property taxes or budget cuts. Finally, this bill provides clarity. Property owners, online platforms, tax administrators, and municipalities all benefit when the law clearly defines who is an operator, who is an occupant, and what constitutes taxable occupancy. HB 1068 removes ambiguity and replaces it with predictable, enforceable rules. In a modern lodging economy, our tax code must keep up. HB 1068 does so in a fair, reasonable, and fiscally responsible way. I respectfully urge the Committee to recommend Ought to Pass. Sincerely, David John Preece State Representative, Hillsborough District 17