2003 SESSION

03-0601

09/10

HOUSE BILL 666-FN-A

COMMITTEE: Ways and Means

ANALYSIS

This bill expands the meals and rooms tax to include a tax on admission charges for entertainment. Revenues from the tax on admission charges shall be deposited in the general fund.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0601

09/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

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

1 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 RSA 78-A:3, IV is repealed and reenacted to read as follows: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, whether as owner or proprietor or lessee, sublessee, mortgagee, licensee, or otherwise.

2 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 or entertainment is provided. Places or locations of amusement or entertainment include, but are not limited to, theaters, motion picture shows, auditoriums where lectures and concerts are given, amusement parks, race tracks, auto shows, boat shows, camping shows, home shows, dog shows, and antique shows.

XXI. "Participant" means any person who, for consideration paid to another, is provided access to a place or location where amusement or entertainment is provided.

3 Meals and Rooms Tax; Licenses 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 charges admission charges. 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 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.

4 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:

II-b. A tax of 8 percent is imposed on admission charges.

5 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. 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 upon request the operator shall state to the purchaser, occupant, [or] renter, or participant the amount of the tax.

6 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 received by it, or both, exclusive of the taxes collected on such rents, charges, [and] gross rental receipts, and admission charges. 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.

7 Disposition of Meals and Rooms Tax Revenues; Admission Charges Revenue. Amend the introductory paragraph of RSA 78-A:26, I to read as follows:

I. Beginning on July 1, 1995, and for each fiscal year thereafter, the department shall pay over all revenue, except revenues identified in [paragraph] paragraphs III and IV of this section, collected under this chapter to the state treasurer. On or before October 1 of each year, the department shall determine the cost of administration of this chapter for the fiscal year ending on the preceding June 30, and it shall notify the state treasurer of these costs by a report certified by them as to correctness. After deducting the cost of administration of the chapter from the total income, the state treasurer shall distribute the net income as follows:

8 New Paragraph; Disposition of Meals and Rooms Tax Revenue; Admission Charges Revenue; General Fund. Amend RSA 78-A:26 by inserting after paragraph III the following new paragraph:

IV. Beginning on July 1, 2003, and for each fiscal year thereafter, the department shall pay over all revenue collected pursuant to RSA 78-A:6, II-b to the state treasurer for deposit in the general fund.

9 Effective Date. This act shall take effect July 1, 2003.

LBAO

03-0601

Revised 3/5/03

HB 666 FISCAL NOTE

FISCAL IMPACT:

METHODOLOGY: