HB1480

Testimony on NH HB1480: Potential Risks of Raising the Meals and Rooms Tax The proposed HB 1480, which seeks to increase the meals and rooms tax rate from 8.5% to 9%, raises significant concerns regarding its economic impact on residents and local businesses. Although the stated goal is to generate additional revenue for the General Fund and the Education Trust Fund, such an increase could disproportionately affect low- and middle-income families who frequently rely on affordable dining and lodging options. With rising costs already straining household budgets, any increase in tax rates could lead to diminished consumer spending in the hospitality sector, potentially stifling growth and harming small businesses that operate on thin margins. Furthermore, the static analysis provided by the Department of Revenue Administration indicates that while the immediate fiscal impact may seem manageable, the long-term implications are murky. By increasing the meals and rooms tax, municipalities may initially see a boost in revenue; however, this could shift the burden onto local governments who may need to recalibrate their budgets in anticipation of fluctuating tourism and dining patterns. Such tax adjustments should take into account the broader economic landscape, ensuring that we do not unintentionally undermine the vitality of New Hampshire’s local businesses and tourism-dependent communities. It is crucial to prioritize equitable fiscal policies that truly benefit all residents without adding unnecessary financial strain.

This tax increase risks making NH uncompetitive in the vacation market. And the meals tax is a burden on local citizens as well!!

Members of the committee. Enough already!! They inflated their pensions as it is with their greed and thievery!! No Bo No. thank you

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.

The Meals and Room tax is a good tax as it is consumption based and tourists are the primary target, but as a NH resident who spends a bit too much time at local restaurants and one who tips decently I oppose it. The restaurants I hit multiple times a week may not miss me, but they'll miss my money.