Shihchi Shieh

Chair, members of the committee, thank you for the opportunity to speak today. My name is Shihchi Shieh, and I am here to express strong opposition to the proposal to increase the Meals and Rooms Tax for individuals who reside in New Hampshire fewer than 185 days per year. This bill may appear targeted and narrow, but its consequences would be broad, counterproductive, and harmful to the very sectors that keep New Hampshire’s economy vibrant. 1. It Punishes Seasonal Workers, Part-Time Residents, and Temporary Visitors Many people who spend part of the year in New Hampshire are not tourists in the traditional sense. They are: Seasonal workers who support our hospitality, recreation, and tourism industries Part-time residents who contribute to local economies, volunteer in communities, and pay property taxes Temporary workers who fill critical labor shortages Increasing their tax burden sends a clear message: New Hampshire is less welcoming, and their contributions are less valued. 2. It Risks Undermining the Tourism and Hospitality Sector Tourism is one of New Hampshire’s largest economic engines. Raising the Meals and Rooms Tax for any group — especially one that includes repeat visitors and seasonal residents — creates a disincentive to spend money locally. Higher taxes on lodging and meals: Reduce competitiveness with neighboring states Discourage longer stays Push visitors toward short-term rentals or out-of-state alternatives Hurt small businesses that rely on predictable seasonal revenue At a time when restaurants, inns, and hotels are still recovering from years of economic instability, this bill adds unnecessary pressure. 3. It Creates Administrative Complexity Without Clear Benefit Determining who has been in the state fewer than 185 days introduces: Compliance burdens for businesses Confusion for consumers Enforcement challenges for the state The Meals and Rooms Tax is currently straightforward and predictable. This bill complicates a system that works, without demonstrating that the added complexity will produce meaningful revenue. 4. It Undermines New Hampshire’s Reputation for Fair, Simple, Low-Tax Policy New Hampshire has long distinguished itself through a tax structure that is: Simple Transparent Predictable Attractive to both residents and visitors Creating a special, higher tax tier based on residency duration contradicts these principles. It introduces a precedent that could open the door to further targeted tax increases in the future. 5. It Risks Long-Term Economic Harm for Short-Term Revenue Even if this bill generates some additional revenue, it does so at the expense of: Repeat tourism Seasonal labor Local business vitality The state’s broader economic reputation New Hampshire thrives when it remains accessible, welcoming, and economically competitive. This bill moves in the opposite direction. Conclusion For these reasons, I respectfully urge the committee to reject this proposal. It is a policy that complicates our tax system, harms key industries, and sends the wrong message to the people who choose to spend their time and money in New Hampshire. Thank you for your consideration.