Bill Text: NH SB99 | 2021 | Regular Session | Introduced
Bill Title: Relative to the amount of meals and rooms tax revenue that is distributed to municipalities.
Spectrum: Partisan Bill (Republican 8-0)
Status: (Introduced - Dead) 2021-03-11 - Pending Motion Refer to Finance Rule 4-5; 03/11/2021; Senate Journal 7 [SB99 Detail]
Download: New_Hampshire-2021-SB99-Introduced.html
SB 99-FN-LOCAL - AS INTRODUCED
2021 SESSION
21-0889
10/05
SENATE BILL 99-FN-LOCAL
AN ACT relative to the amount of meals and rooms tax revenue that is distributed to municipalities.
SPONSORS: Sen. Ricciardi, Dist 9; Rep. Abrami, Rock. 19; Sen. Bradley, Dist 3; Sen. Carson, Dist 14; Sen. Hennessey, Dist 1; Sen. Avard, Dist 12; Sen. Gannon, Dist 23; Rep. Kelsey, Hills. 7
COMMITTEE: Ways and Means
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ANALYSIS
This bill removes the annual increase limit on the distribution of the meals and rooms tax revenues to municipalities so that 40 percent of net revenues is distributed annually.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
21-0889
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
AN ACT relative to the amount of meals and rooms tax revenue that is distributed to municipalities.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Repeal. RSA 78-A:26, II, relative to the limit on meals and rooms tax distribution of revenues, is repealed.
2 Effective Date. This act shall take effect July 1, 2021.
21-0889
Revised 2/5/21
SB 99-FN-LOCAL- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the amount of meals and rooms tax revenue that is distributed to municipalities.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | ||||
STATE: | FY 2021 | FY 2022 | FY 2023 | FY 2024 | |
Appropriation | $0 | $0 | $0 | $0 | |
Revenue | $0 | Indeterminable Decrease | Indeterminable Decrease | Indeterminable Decrease | |
Expenditures | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ ] Other | ||||
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LOCAL: |
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Revenue | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | |
Expenditures | $0 | $0 | $0 | $0 | |
METHODOLOGY:
This bill would repeal RSA 78-A:26, II that places a limit on the year to year increase on the distribution of Meals and Rentals revenue back to municipalities, allowing for the full 40 percent of the net income as established in RSA 78-A:26,I(c ) to be distributed back to municipalities.
The Treasury Department is responsible for distributing these funds back to municipalities. The Department's expenditures and local revenue will increase by an indeterminable amount as a result of this bill. Though the Department is not able to predict the exact fiscal impact of this bill, the Department is able to demonstrate the impact of this bill if it had been in effect for FY 2021 using the following assumptions:.
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A. | Fiscal Year 2020 Meals & Rooms Tax Revenues (unaudited) | $325,290,451 | ||
B. | (-) Cost of Meals & Rooms Administration | ($2,595,532) | ||
C. | (-) Funds intended for Education Trust Fund | ($8,700,000) | ||
D. | Fiscal Year 2020 Meals & Rooms Tax Revenues Net of Authorized Expenditures | $313,994,919 | ||
E. | 40% per RSA 78-A:26, I(c) | 40% | ||
F. | Total Amount to Be Distributed | $125,597,968 | ||
G. | Total Amount Distributed in Fiscal Year 2021 | $68,805,057 | ||
H. | Increase/(Decrease) | $56,792,911 | ||
The Department of Revenue Administration states increasing the Meals and Rooms distribution to municipalities will result in an indeterminable decrease in State General Fund revenue and an increase in local revenue.
It should be noted that since the FY 2010-2011 biennium, the Legislature has frozen the distribution formula contained in RSA 78-A:26 and directly appropriated the amount to be distributed back to the municipalities.
AGENCIES CONTACTED:
Department of Revenue Administration and Treasury Department
