Georgina Lambert

Testimony on NH HB1480: Potential Risks of Raising the Meals and Rooms Tax The proposed HB 1480, which seeks to increase the meals and rooms tax rate from 8.5% to 9%, raises significant concerns regarding its economic impact on residents and local businesses. Although the stated goal is to generate additional revenue for the General Fund and the Education Trust Fund, such an increase could disproportionately affect low- and middle-income families who frequently rely on affordable dining and lodging options. With rising costs already straining household budgets, any increase in tax rates could lead to diminished consumer spending in the hospitality sector, potentially stifling growth and harming small businesses that operate on thin margins. Furthermore, the static analysis provided by the Department of Revenue Administration indicates that while the immediate fiscal impact may seem manageable, the long-term implications are murky. By increasing the meals and rooms tax, municipalities may initially see a boost in revenue; however, this could shift the burden onto local governments who may need to recalibrate their budgets in anticipation of fluctuating tourism and dining patterns. Such tax adjustments should take into account the broader economic landscape, ensuring that we do not unintentionally undermine the vitality of New Hampshire’s local businesses and tourism-dependent communities. It is crucial to prioritize equitable fiscal policies that truly benefit all residents without adding unnecessary financial strain.