HB 1558-FN - AS INTRODUCED

2018 SESSION

18-2107

10/01

HOUSE BILL 1558-FN

AN ACT relative to the payment of the meals and rooms tax by individuals renting cars through an online service.

SPONSORS: Rep. Packard, Rock. 5; Rep. Hinch, Hills. 21; Rep. J. Graham, Hills. 7; Rep. Major, Rock. 14; Rep. D. Thomas, Rock. 5

COMMITTEE: Ways and Means

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ANALYSIS

This bill modifies definitions under the meals and rooms tax to include as taxable motor vehicle rentals the prearrangement of motor vehicle rentals with an online enabled technology application service, website, or system.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2107

10/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eighteen

AN ACT relative to the payment of the meals and rooms tax by individuals renting cars through an online service.

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

1  Meals and Rooms Tax; Motor Vehicle Rentals; Definition of Rental Agreement.  Amend RSA 78-A:3, XV to read as follows:

XV.  "Rental agreement'' means an agreement by the owner of a motor vehicle to provide, for not longer than 180 days, the exclusive use of that motor vehicle to another for consideration.  Rental agreement shall also mean the prearrangement by an owner of a motor vehicle with the administrator/facilitator of an online enabled technology application service, website, or system that enables the prearrangement of vehicle rentals for not longer than 180 days, for which consideration is paid to the online service, website, or system by the renter of the motor vehicle.

2  Definition; Gross Rental Receipts.  Amend RSA 78-A:3, XVI to read as follows:

XVI.  "Gross rental receipts'' means value received or promised as consideration to the owner of a motor vehicle for rental of the vehicle, or to the administrator/facilitator of an online enabled technology application service, website, or system that enables the prearrangement of vehicle rentals, but does not include:

(a)  Separately stated charges for insurance;

(b)  Charges for damages to the motor vehicle occurring during the rental agreement period;

(c)  Separately stated charges for motor fuel sold by the owner of the motor vehicle.

3  Effective Date.  This act shall take effect 60 days after its passage.

LBAO

18-2107

10/27/17

HB 1558-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to the payment of the meals and rooms tax by individuals renting cars through an online service.

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

METHODOLOGY:

This bill clarifies the application of the Meals and Rooms Tax to the rental of motor vehicles utilizing "an online enabled technology application service, website, or system that enables the prearrangement of vehicle rentals for longer than 180 days, for which consideration is paid to the online service, website, system by the renter of the motor vehicle."  To the extent the Meals and Rooms Tax is not being applied correctly when a motor vehicle rental is rented through a third party agent, such as an online enabled technology application service, website, or system, and this bill clarifies the taxability of those transactions, there may be an increase in Education Trust Fund revenue.

AGENCIES CONTACTED:

Department of Revenue Administration