HB 1440-FN-A - AS INTRODUCED
2000 SESSION
HOUSE BILL 1440-FN-A
AN ACT taxing the cost of advertising under the meals and rooms tax.
SPONSORS: Rep. Vaillancourt, Hills 44
This bill taxes the cost of advertising on television and radio stations and in daily newspapers under the meals and rooms tax.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
00-2335
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand
AN ACT taxing the cost of advertising under the meals and rooms tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraphs; Meals and Rooms Tax; Advertising. Amend RSA 78-A:3 by inserting after paragraph XIX the following new paragraphs:
XX. "Advertising" means advertisements placed on television stations, radio stations, and in daily newspapers.
XXI. "Advertising receipts" means the value received or promised as consideration to a television station, radio station, or daily newspaper for the cost of advertising time or space.
XXII. "Purchase" means a purchase of a meal or of advertising time or space.
XXIII. "Purchaser" means a purchaser of a meal or of advertising time or space.
2 Meals and Rooms Tax; License Required; Penalty. Amend RSA 78-A:4 to read as follows:
78-A:4 Licenses Required; Penalty.
I. Each operator shall register with the department the name and address of each place of business within the state where it operates a hotel, sells taxable meals, [or] rents motor vehicles, or offers advertising. The operator shall pay $5 for each registration, upon receipt of which the department shall issue a license for each place in such form as it determines, attesting that the registration has been made. The license expires on June 30 in each odd-numbered year unless sooner revoked or suspended by the department. The license shall be conspicuously posted in a public area upon the premises to which it relates.
II. No person shall engage in serving taxable meals, renting rooms, [or] renting motor vehicles, or offering advertising without first obtaining the license required by this section. The license is nonassignable and cannot be transferred. Any person who fails to register or obtain a license as provided in this section shall be subject to the penalty provisions of RSA 21-J:39.
3 New Paragraph; Meals and Rooms Tax; Tax Imposed on Advertising Receipts. Amend RSA 78-A:6 by inserting after paragraph II-A the following new paragraph:
II-b. A tax of 8 percent is imposed upon the advertising receipts of each purchase of advertising.
4 Meals and Rooms Tax; Collection of Tax. Amend RSA 78-A:7, I to read as follows:
I. The operator shall either state the amount of the tax to each occupant, purchaser of a meal or advertising, or renter, or state that the tax is included in the price of the occupancy, meal, [or] gross rental receipts, or advertising receipts received. The operator shall demand and collect the tax from the occupant, purchaser, or renter. The occupant, purchaser, or renter shall pay the tax to the operator. If the tax is included in the price of the meal, occupancy, [or] gross rental receipts, or advertising receipts received, upon request the operator shall state to the purchaser, occupant, or renter the amount of the tax.
5 Meals and Rooms Tax; Collection of Tax. Amend RSA 78-A:7, IV to read as follows:
IV. In lieu of keeping detailed records of taxes collected, and in lieu of payment of the taxes collected under this chapter, an operator may, in writing, elect to compute the amount of taxes due at 8 percent of the total taxable rent, charge for meals, [or] gross rental receipts, or advertising receipts received by it, or both, exclusive of the taxes collected on such rents, charges, [and] gross rental receipts, and advertising receipts. If this election is made, the operator may not change the method of computing taxes without the written consent of the department. Any balance of the tax remaining in possession of the operator may be retained by it.
6 Effective Date. This act shall take effect July 1, 2000.
LBAO
00-2335
12/14/99
HB 1440-FN-A - FISCAL NOTE
AN ACT taxing the cost of advertising under the meals and rooms tax.
FISCAL IMPACT:
The Department of Revenue Administration indicates that this bill will increase state revenue by $10 million in FY 2001 and each year thereafter and increase state expenditures by $25,000 in FY 2001. There is no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department assumed that state revenues would increase by between $8 and $12 million per year beginning in FY 2001 based on a review of a sample of tax returns in the television, radio, and newspaper industry and extending the 8% meals and rooms tax to them according to the provisions of the bill.
The Department assumed that state expenditures would increase by $25,000 in FY 2001 to cover the cost of changing the telefile and Department computer systems to accommodate this tax change.