HB 1090 — relative to meals and rooms taxes.

HB 1090-FN - AS INTRODUCEDAMENDED SESSIONBY 26-2527THE 07/05 HOUSE BILL19Feb2026... 1090-FN AN ACT subjecting certain motor vehicles to meals and rooms taxes.

0434h SESSION 26-2527 07/05 HOUSE BILL 1090-FN AN ACT relative to meals and rooms taxes.

Ways and Means ───────────────────────────────────────────────────────────────── AMENDED ANALYSIS This bill subjects certain water vehicles to meals and rooms taxes and creates a flat grosstax rentalrate receipton taxmeals. rate.

HB 1090-FN - AS INTRODUCEDAMENDED 26-2527BY 07/05THE STATEHOUSE OF19Feb2026... NEW HAMPSHIRE In the Year of Our Lord Two Thousand Twenty-Six AN ACT subjecting certain motor vehicles to meals and rooms taxes.

0434h 26-2527 07/05 STATE OF NEW HAMPSHIRE In the Year of Our Lord Two Thousand Twenty-Six AN ACT relative to meals and rooms taxes.

Tax On Meals and Rooms;

Definitions.

Amend RSA 78-A:3, IX to read as follows:

IX.

"Motor vehicle" means a self-propelled vehicle designed to transport persons or property on a public highway or waterway that is required by law to be registered for operation on public highways or waterways.

3 Taxation;

43 Taxation;

Beginning on July 1, [1999] 2026,2027, and for each fiscal year thereafter, the department shall pay over all revenue collected pursuant to RSA 78-A:6, [II-a] III to the state treasurer for deposit in the education trust fund established by RSA 198:39.

54 Effective Date.

This act shall take effect AprilJuly 1, 2027.

LBA 26-2527 11/6/2502/26/2026 HB 1090-FN- FISCAL NOTE AS INTRODUCEDAMENDED ANBY ACTTHE subjectingHOUSE certain(AMENDMENT motor# vehicles2026-0434h) AN ACT relative to meals and rooms taxes.

Estimated State Impact FY 2026 FY 2027 FY 2028 FY 2029 Indeterminable Indeterminable Revenue $0 $0 Indeterminable Indeterminable Increase Increase Revenue Fund(s) General Fund and Education Trust Fund Expenditures* $0 $0 $0 $0 Funding Source(s) None Appropriations* $0 $0 $0 $0 Funding Source(s) None *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill METHODOLOGY:

This bill expands and makes minor changes to the administration of the Meals and Rooms tax (M&R),(M&R) includingby exemptingeliminating from the definitioncurrent ofschedule "grossfor rentaltaxable receipts"meals electronicallyunder billed$1.00 highwayin tollsprice ifand themaking chargeall istaxable statedmeals separately;taxed at the 8.5% rate;

amendingand RSAchanges 78-A:3, IX to expand the definitionrounding of “motor vehicle” to includebe registration-requiredup vehicles designed to transportthe personsnext orwhole propertynickel onfor publictaxable waterwaysmeals. as well as on public highways (i.e.

motorboats.);The bill also clarifies that gross rental receipts does not include separately stated charges for highway tolls electronically billed to the owner of the vehicle.

eliminatesThe theDepartment currentof scheduleRevenue forAdministration taxabledoes mealsnot underhave $1.00sufficient indata price,to makingestimate allthe taxablefiscal mealsimpact taxedof at the 8.5%toll rate;charge change.

and further modifies the current rounding up or down to the next whole cent to become rounding up to the next whole nickel for taxable meals.

For the toll charge change, the Department of Revenue Administration does not have sufficient data to estimate the fiscal impact.

The application of the M&R tax to motorboat rentals will increase Education Trust Fund revenue by an indeterminable amount.

The Department does not have data to provide the exact impact of this change.

Using national data that boat rentals are a $5.3 billion industry and assuming the NH share based on population would be $2.2 million in rentals, the estimated increase in revenue would be $189,000 per year.

The Department notes the bill amends RSA 78-A:26, II to a beginning date of July 1, 2026;

however, the effective date of the proposed legislation is currently stated to be April 1, 2027.

This retroactive change in the distribution of M&R revenue could be interpreted to require the Department to recalculate nine months’ worth of distribution of motor vehicle tax revenue to the education trust fund, which DRA believes is not intended.

The Department suggests the effective date and the date of the distribution change be changed to the same date, and suggests July 1, 2027 for both, in order to allow DRA time to develop forms and rules and publicize the changes in law made by the proposed legislation, as well as to provide operators and their vendors time to adjust their systems and practices, prior to implementation.

The Department does not anticipate this bill will result in any additional administrative costs that could not be absorbed within the Department's operating budget,budget. assuming an effective date of July 1, 2027.