New Hampshire 2024 Regular Session

New Hampshire Senate Bill SB585

Introduced
12/14/23  
Refer
12/14/23  
Report Pass
2/21/24  
Engrossed
3/12/24  
Refer
3/12/24  
Report Pass
5/10/24  
Enrolled
7/15/24  
Chaptered
7/30/24  

Caption

Relative to a property lien resulting from unpaid meals and rooms taxes.

Impact

The proposed changes to the definition of 'operator' could have implications for the collectability of meals and rooms taxes. By narrowing the scope of who can be held responsible, the bill could make it more challenging for authorities to collect overdue taxes from LLCs. While the bill does not alter the taxability of meals and rooms services, it introduces conditions that might indirectly affect revenue collection efficiencies, potentially reducing overall tax revenue if certain operators evade responsibility.

Summary

Senate Bill 585 (SB585) aims to amend the provisions concerning property liens related to unpaid meals and rooms taxes in New Hampshire. The bill specifies that for property tax liens filed against operators—specifically those running limited liability companies (LLCs)—only persons in managerial positions will be regarded as operators liable for unpaid taxes. This amendment clarifies the responsibilities of managers within LLCs for tax compliance, streamlining tax collection and enforcement related to meals and rooms taxes.

Sentiment

The sentiment surrounding SB585 appears to be cautious, with concerns about the potential financial implications for local governments. Supporters may argue that clearly defining managerial liability could enhance tax compliance, while critics warn that limiting operator liability could hinder the state’s ability to collect on outstanding taxes. The discussion reflects a balance between legislative intent to encourage business compliance and safeguarding the state’s fiscal interests.

Contention

Notable points of contention include the potential consequences this bill may have on the effectiveness of tax collection from LLCs operating in the hospitality industry. By excluding certain members from liability, it raises questions about the business practices of LLCs and their accountability in tax matters. Critics might also argue that this legislation could create loopholes that permit managers to avoid financial responsibility, ultimately affecting the state’s budget and public services reliant on tax revenues.

Companion Bills

No companion bills found.

Previously Filed As

NH HB572

Relative to eligibility for free school meals.

NH HB569

Relative to the state education property tax and the low and moderate income homeowners property tax relief program.

NH HB122

Relative to microenterprise home kitchen operations.

NH HB528

Relative to school lunches and establishing the meals for students fund.

NH HB340

Relative to the transfer of residential property.

NH HB576

Relative to administration of a commercial property assessed clean energy (C-PACE) program in a clean energy efficiency and clean energy district.

NH HB639

Relative to the legalization and regulation of cannabis and making appropriations therefor.

NH SB52

Relative to the regulation and operation of electric vehicle charging stations.

NH HB98

Relative to applications for the low and moderate income homeowners property tax relief program.

NH HB288

Relative to taxation of sole proprietorship businesses.

Similar Bills

CA AB2013

Property taxation: new construction: damaged or destroyed property.

CA AB1500

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CA AB245

Property taxation: application of base year value: disaster relief.

DC B25-0486

Uniform Community Property Disposition at Death Act of 2023

CA SB964

Property tax: tax-defaulted property sales.

CA SB603

Property taxation: transfer of base year value: disaster relief.

CA SB1091

Property taxation: transfer of base year value: disaster relief.

HI HB1398

Relating To Property.