Bill > HB1063

This bill reduces the amount of commission that meals and rooms (M&R) tax operators can retain when filing their tax returns with the New Hampshire Department of Revenue Administration. Specifically, the bill lowers the operator retention rate from 3% to 1.5% for timely and electronically filed returns. This means that businesses collecting meals and rooms taxes will be allowed to keep less of the tax revenue as compensation for their record-keeping and tax remittance efforts. According to the fiscal analysis, this change would generate approximately $6.4 million in additional revenue for the state, with $6.3 million going to the General Fund and $0.1 million to the Education Trust Fund. The bill is set to take effect on July 1, 2026, with the first reduced commission rate being applied to returns due on August 15, 2026. The fiscal note indicates that the reduction in operator commission will also incrementally increase the Meals and Rooms Municipal Revenue Fund, with an estimated increase of $1.7 million in fiscal year 2028 and $1.8 million in fiscal year 2029 and subsequent years.