Bill > HB1090

This bill modifies the state's Meals and Rooms (M&R) tax by expanding its scope and making several key changes. The bill broadens the definition of "motor vehicle" to include waterway vehicles like motorboats that are required to be registered, thereby subjecting boat rentals to the existing 8.5% tax rate. It also adds a provision that electronically billed highway tolls can be separately stated and excluded from gross rental receipts. The bill eliminates the previous tiered tax rate system for meals, replacing it with a flat 8.5% tax rate for all meals, and changes the rounding method so that tax amounts will be rounded up to the nearest nickel instead of the previous rounding method. Additionally, the bill adjusts the revenue distribution timeline, stating that beginning July 1, 2026, tax revenues collected from motor vehicle rentals will be deposited into the education trust fund. The Department of Revenue Administration estimates this could generate approximately $189,000 annually from boat rental taxes and about $24,000 per year from the new rounding method, though these figures are considered indeterminable. The bill is set to take effect on April 1, 2027, though the Department suggests aligning the effective date with the revenue distribution date of July 1, 2027.

Budget and Finance

https://gc.nh.gov/bill_Status/billinfo.aspx?id=1731&inflect=2