HB 0558

HB 558-FN-A-LOCAL - AS INTRODUCED

AN ACT increasing certain state taxes, establishing a tax on gambling winnings, and expanding the meals and rooms tax to include a tax on entertainment.

SPONSORS: Rep. McGuirk, Ches 1

This bill increases certain state taxes, establishes a tax on gambling winnings, and expands the meals and rooms tax to include a tax on entertainment.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT increasing certain state taxes, establishing a tax on gambling winnings, and expanding the meals and rooms tax to include a tax on entertainment.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Education Property Tax; Rate Increased; April 1, 2001. Amend RSA 76:3 to read as follows:

76:3 Education Property Tax. An annual education property tax at the uniform rate of [~~$6.60~~] $6.65 on each $1000 of the value of taxable property is hereby imposed on all persons and property taxable pursuant to RSA 72 and RSA 73, except property subject to tax under RSA 82 and RSA 83-F.

2 Education Property Tax; Rate Increased; April 1, 2002. Amend RSA 76:3 to read as follows:

76:3 Education Property Tax. An annual education property tax at the uniform rate of [~~$6.65~~] $6.70 on each $1000 of the value of taxable property is hereby imposed on all persons and property taxable pursuant to RSA 72 and RSA 73, except property subject to tax under RSA 82 and RSA 83-F.

3 Utility Property Tax; Rate Increased; April 1, 2001. Amend RSA 83-F:2 to read as follows:

83-F:2 Tax Imposed. For taxable periods beginning April 1, [~~1999~~] 2001, a tax is imposed upon the value of utility property at the rate of [~~$6.60~~] $6.65 on each $1000 of such value, to be assessed annually as of April 1, and every year thereafter, and paid in accordance with this chapter.

4 Utility Property Tax; Rate Increased; April 1, 2002. Amend RSA 83-F:2 to read as follows:

83-F:2 Tax Imposed. For taxable periods beginning April 1, [~~1999~~] 2002, a tax is imposed upon the value of utility property at the rate of [~~$6.65~~] $6.70 on each $1000 of such value, to be assessed annually as of April 1, and every year thereafter, and paid in accordance with this chapter.

77-E:2 Imposition of Tax. A tax is imposed at the rate of [~~1/2~~] 3/4 of one percent upon the taxable enterprise value tax base of every business enterprise. [~~A 2/3 majority of those present and voting of each house of the general court shall be necessary to increase the tax rate under this section.~~]

6 Definitions; Meals and Rooms Tax; Operator. RSA 78-A:3, IV is repealed and reenacted to read as follows:

IV. "Operator" means any person operating a hotel, charging for a taxable meal, receiving gross rental receipts, or receiving admission charges or dues, whether as owner or proprietor or lessee, sublessee, mortgagee, licensee, or otherwise.

7 New Paragraphs; Meals and Rooms Tax; Definitions. Amend RSA 78-A:3 by inserting after paragraph XIX the following new paragraphs:

XX. "Admission charge" means the amount paid for the right or privilege to have access to a place or location where amusement, entertainment, or recreation is provided, exclusive of any separately stated charge or charges for optional instruction or equipment rental. Places of amusement, entertainment or recreation include, but are not limited to, theaters, motion picture shows, auditoriums where lectures and concerts are given, amusement parks, race tracks, ski resorts, zoos, dance halls, ball parks, golf courses, tennis courts, gymnasiums, health and fitness clubs, skating rinks, auto shows, boat shows, camping shows, home shows, dog shows, and antique shows.

XXI. "Dues" means assessment charges to members of athletic clubs irrespective of the purpose for which such charges are made and any charges for sporting privileges for any period of more than 6 days but not including charges made for instruction.

XXII. "Athletic club" means any golf course, gymnasium, health or fitness club, tennis club, racquet club, country club, or similar club for which members are assessed dues, and at which members of such club enjoy the right or privilege to have access to club sporting or recreational facilities, whether or not additional charges are assessed for such access.

XXIII. "Participant" means any person who, for consideration paid to another, is provided access to a place or location where amusement, entertainment, or recreation is provided including, but not limited to, members of athletic clubs.

8 Meals and Rooms Tax; Licenses Required; Penalty. Amend RSA 78-A:4 to read as follows:

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 charges admission charges or dues. 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 charging admission charges or dues 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.

9 New Paragraphs; Meals and Rooms Tax; Tax Imposed on Admission Charges and Dues. Amend RSA 78-A:6 by inserting after paragraph II-a the following new paragraphs:

10 Meals and Rooms Tax; Collection of Taxes. 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] renter, or participant, or state that the tax is included in the price of the occupancy, meal, [or] gross rental receipts received, or admission charges or dues. The operator shall demand and collect the tax from the occupant, purchaser, [or] renter, or participant. The occupant, purchaser, [or] renter, or participant shall pay the tax to the operator. If the tax is included in the price of the meal, occupancy, [or] gross rental receipts received, or admission charges or dues upon request the operator shall state to the purchaser, occupant, [or] renter, or participant the amount of the tax.

11 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] the percent tax rate specified under RSA 78-A:6 of the total taxable rent, charge for meals, [or] gross rental receipts received, or admission charges or dues received by it, or both, exclusive of the taxes collected on such rents, charges, and gross rental receipts, and admission charges and dues. 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.

12 Intrastate and Interstate Communications Services Tax; Rate Increased. Notwithstanding RSA 82-A:3 and RSA 82-A:4, for the period beginning July 1, 2001 and ending June 30, 2003, the rate of tax is 6.5 percent on the gross charge for communications services purchased at retail from a retailer.

13 New Subdivision; Gambling Tax. Amend RSA 284 by inserting after section 21-v the following new subdivision:

I. For purposes of this subdivision, "gambling winnings" means any money distributions to winners of bingo and lucky 7 games, sweepstakes, and pari-mutuel activities in the state of New Hampshire. It shall not include winnings of a free ticket.

II.(a) A supplemental tax shall be imposed at the rate of 5 percent upon all gambling winnings, except that the first $100 of such winnings to a single individual from a single game, race, or ticket purchase shall be exempt from taxation under this subdivision.

(b) Each payor shall keep books and records in a form acceptable to the department of revenue administration showing the amount of all taxes due. The payor shall withhold such amount from the distribution to the winner. The payor shall pay the amount withheld over to the state as provided in subparagraph (c).

(c) Within 10 days after the end of each month, an amount equal to the taxes withheld shall be remitted to the department of revenue administration to be deposited by the state treasurer in the general fund.

III. The commissioner of the department of revenue administration shall adopt rules, under RSA 541-A, relative to carrying out the purposes of this subdivision.

14 Repeal. RSA 284:21-r, relative to the tax exempt status of sweepstakes winnings, is repealed.

15 Insurance Premium Tax; Rate Increased. Amend RSA 400-A:32, I to read as follows:

I. Every insurer, at the same time as the filing of the report required by RSA 400-A:31, shall pay to the insurance commissioner a tax of [2] 3 percent upon such net premiums as set forth in the report filed pursuant to RSA 400-A:31, I, less estimated payments made in accordance with RSA 400-A:32, II; provided, however, that every authorized insurer shall pay to the insurance commissioner a minimum annual premium tax of no less than $200.

AN ACT increasing certain state taxes, establishing a tax on gambling winnings, and expanding the meals and rooms tax to include a tax on entertainment.

The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill as it is awaiting information from an agency.