HB1090

Testimony on NH HB1090: Implications of Taxing Certain Vehicles The proposed legislation, NH HB 1090, aims to expand the scope of meals and rooms taxes by including certain motor vehicles and watercraft rentals. While this expansion may generate additional revenue for the state—potentially benefiting the Education Trust Fund—it's important to consider the broader implications of such changes. Specifically, the imposition of an 8.5% tax on gross rental receipts from these vehicles could place an undue financial burden on low- and middle-income families. Taxation that disproportionately affects these groups leads to regressive cost impacts, as individuals in these brackets are less able to absorb such expenses without compromising their basic needs. Furthermore, the bill mandates that operators round up transaction totals to the nearest nickel, which complicates the collection process and may create inconsistencies in how taxes are applied across various service providers. This could force many small businesses to overhaul their point-of-sale systems to comply with the new regulations, ultimately leading to increased operational costs that could further burden consumers. It's essential for lawmakers to reconsider the approach taken in this bill, ensuring that any new tax measures do not exacerbate existing inequalities or create undue compliance challenges for businesses, particularly in the wake of ongoing economic uncertainties.

I strongly oppose taxing boat rentals in the state of NH. Few tourists will visit our state and hotels, restaurants, marinas and gas stations will all suffer.

How about we find a way not to scare tourism money away from the state of NH. This must be a democrat/liberal (ruining this country) thing to do. MAGA John Naughton IV

Dear Sirs- I strongly oppose this bill to tax rental boats. This tax would further reduce the tourist business that we receive in the state of NH. The boating public will limit their visits to our state because of the increased cost and thus many NH businesses will suffer losses. Hotels, restaurants, gas stations will all suffer economically. Thank you for your consideration.

The White Mountains Attractions Association is a destination marketing organization representing over 300 tourism businesses and several communities across the White Mountains region, one of the state’s most important tourism and economic drivers. While we appreciate the intent behind this bill, we respectfully oppose it due to the negative impacts it would have on New Hampshire’s tourism economy and the small businesses that depend on it.

Hello, I manage a large marina in New Hampshire with approximately 70 rental boats. Seasonal boat rentals represent a significant portion of our summer revenue and are critical to the financial viability of our operation. The marine and tourism industries in New Hampshire are highly seasonal, with only four to five months of meaningful boating activity each year. Maintaining profitability and retaining employees year-round under these conditions is already challenging. Any additional expense, particularly a proposed 8.5% tax on boat rentals would directly deter customers from renting boats and enjoying the lakes and recreational opportunities New Hampshire is known for. A decline in rental activity would reduce our ability to generate the revenue necessary to sustain operations and continue paying our employees. This would further exacerbate the cost-of-living pressures many workers and small businesses are already facing. Ultimately, such a tax risks harming local employment, small businesses, and the broader tourism economy. New Hampshire’s appeal as a tourism destination is closely tied to its affordability and business-friendly environment. I urge you to consider the downstream economic impacts of this proposal and help keep New Hampshire competitive, inviting, and supportive of its seasonal industries. Let’s keep New Hampshire awesome and welcoming to visitors and residents alike. Live Free and Die—not Live Free plus 8.5%. Respectfully, Chris Wilking

It effectively raises prices on short-term recreational rentals, which could reduce access to boating and outdoor recreation for working families and price-sensitive visitors. It risks making New Hampshire less competitive with neighboring states for tourism and outdoor recreation spending at a time when this sector is a key driver of the state’s economy. The meals and rooms tax is already a significant revenue source; expanding its base without clear impact analysis could unintentionally harm small, seasonal businesses that rely on tight margins. There appears to be limited transparent data from other states on applying similar taxes to boat and motor vehicle rentals, making it hard to predict fiscal benefits versus harm to local businesses and consumers.

I think it would be bad to tax one of the few ways most of the public that can't afford to buy a boat can still enjoy boating.

This bill makes zero sense!!! This is just another way that the State is trying to generate additional revenue to make up for shortfalls in otherwise mismanaged budget areas. The only respectable part about the language is that they are outright using the word TAX instead of hiding it by calling it another "fee". You cannot overnight stay on standard day rental boats, nor are you allowed to operate them at night due to insurance policy limitations which is common in rental agreements. And no part of a boat rental can be misconstrued to represent a meal or any type of consumable. There is no reason that there should be ANY additional taxation applied to a private business providing a tourism experience to people who come to enjoy our state! The State already jabs enough money from the marine trade businesses! And every fee the state imposes is taxation by a different name. This just discourages all parties involved, in part for the following reasons: 1.) The boats in the rental fleets already have paid registration fees 2.) The boats have already been charged for the additional usage decal fees 3.) Any fuel purchased and used from a gas dock has been charged a tax (most people do not file the paperwork and receipts to recover the road tax imposed) 4.) The private business themselves have already paid business taxes to operate 5.) Tourists who come for a weekend or vacation period will pay Meals & Room Tax for accommodations and any restaurant meals consumed while in our fine state. 6.) Tourists will also pay road tax and toll fees during their time driving in our state (via I95 to the seacoast OR I93 to the lakes region and beyond) 7.) Tourists who procure boating licensing will pay fees 8.) Tourists who procure fishing licenses will pay fees Enough is enough! Respectfully submitted, Eric P. VanSteensburg Laconia, NH

I oppose this bill.

we, as a state, cannot continue to put the burden of operating expenses, solely on the back of visitors/tourists in a state that depends on tourism. (see cutting off your nose to spite your face...). Rooms and meals taxes, gas taxes already tap this group enough. reverse the decision to abandon vehicle inspections. that is a source of revenue for the state and helps to protect the safety of our roads, saves lives, and helps to protect the environment.

NH should remain tax free!

Live free or die - no taxes!!!!!!!!!!!!!

I am strongly opposed to this bill. It is hard enough on the average person that we have to pay an additional 8.5% Rooms and Meals tax, we SHOULD NOT have to pay this added fee to recreate in the State of NH on Boat Rentals or anything else, for that matter! KEEP NH THE LIVE, FREE, or DIE State - NO NEW TAXES! Thank you!

The Lakes Region Tourism Association opposes HB 1090. The Association represents 450 businesses in the Lakes Region and Central NH.

I oppose this bill for various reasons. First, STR are already clearly defined under NH Law and subject to Rooms and Meals Tax. Expanding the definition of hotels to include STR creates confusion and is unnecessary. Many home owners in NH have to rent out their space on an interim or short term basis to cover increasing taxes and costs. Adding additional taxes or requirements that apply to actual hotels is not only costly but interferes with a landowners use of their property. I, like many others in the White Mountain region, have only been able to keep out families property (which we have owned since 1970) by welcoming families for short stays and then continuing to use the property ourselves. Additionally, the proposed legislation will be another step towards eroding the rights and liberties of New Hampshire landowners, the consequences of which have played out in Massachusetts. State interference with an individuals lawful use of their property, be it direct or indirect (via additional unnecessary requirements and taxes), is a step towards stripping said landowners of their rights and liberties. New Hampshire is not Vermont, Massachusetts, or Rhode Island. The proposed legislation will be another step towards stripping New Hampshire owners of their freedoms, choices, and privileges as property owners and members of the community.