HB 576-FN-A - AS INTRODUCED
2003 SESSION
09/10
HOUSE BILL 576-FN-A
AN ACT increasing the rate of the meals and rooms tax.
SPONSORS: Rep. Bickford, Straf 68; Rep. Vaillancourt, Hills 56
This bill increases the rate of the meals and rooms tax from 8 to 10 percent.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03-0648
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Three
AN ACT increasing the rate of the meals and rooms tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Rate of Meals and Rooms Tax Increased. Amend RSA 78-A:6 to read as follows:
78-A:6 Imposition of Tax.
I. A tax of [8] 10 percent of the rent is imposed upon each occupancy.
II. A tax is imposed on taxable meals based upon the charge therefor as follows:
(a) [Three] Five cents for a charge between $.36 and $.37 inclusive;
(b) [Four] Six cents for a charge between $.38 and $.50 inclusive;
(c) [Five] Seven cents for a charge between $.51 and $.62 inclusive;
(d) [Six] Eight cents for a charge between $.63 and $.75 inclusive;
(e) [Seven] Nine cents for a charge between $.76 and $.87 inclusive;
(f) [Eight] Ten cents for a charge between $.88 and $1.00 inclusive;
(g) [Eight] Ten percent of the charge for taxable meals over $1.00, provided that fractions of cents shall be rounded up to the next whole cent.
II-a. A tax of [8] 10 percent is imposed upon the gross rental receipts of each rental.
III. The operator shall collect the taxes imposed by this section and shall pay them over to the state as provided in this chapter.
2 Effective Date. This act shall take effect July 1, 2003.
LBAO
03-0648
1/24/03
HB 576-FN-A - FISCAL NOTE
AN ACT increasing the rate of the meals and rooms tax.
FISCAL IMPACT:
The Department of Revenue Administration indicates this bill will increase state general fund unrestricted revenue by $46,250,000 in FY 2004 and in each year thereafter and education trust fund unrestricted revenue by $2,100,000 in FY 2004 and in each year thereafter. Local revenue will increase by an indeterminable amount in FY 2004 and in each year thereafter. There will be no fiscal impact on state, county and local expenditures or county revenue.
METHODOLOGY:
The Department assumed no growth for FY 2004 and future years and based the analysis on the budgeted revenue for FY 2003 of $185,000,000 on a rate of 8%. Based on the assumptions, the Department indicated the 10% rate would yield $231,250,000. Of the $48,350,000 in additional revenue, $46,250,000 will be deposited into the General Fund and $2,100,000 into the Education Trust Fund. According to RSA 78-A:26, revenue distributed to unincorporated towns, unorganized places, towns, and cities is equal to the prior year's distribution, plus 75% of the increase in the tax not to exceed $5,000,000. With the higher tax rate, the RSA 78-A:26 distribution limitation should be met in FY 2004.