New Hampshire Senate Bill SB343

New Hampshire 2022 Regular Session

• Introduced: 12/15/21
• Refer: 12/15/21
• Report Pass: 1/26/22
• Report Pass: 2/7/22
• Engrossed: 3/23/22
• Refer: 3/23/22
• Report DNP: 4/20/22

Caption

Establishing a committee to study room occupancy tax revenues and fees and the formula for distribution to municipalities.

Impact

The bill's passage could bring significant changes to the current revenue-sharing mechanisms in place, particularly those outlined in RSA 78-A:26. By modifying the distribution formula, the committee seeks to ensure that municipalities receive a fair share of tax revenues proportional to the occupancy taxes collected within their jurisdictions. This is particularly relevant as tourism and hotel usage fluctuate, which can create disparities in funding for local public services that rely on such taxes.

Summary

Senate Bill 343 establishes a committee tasked with studying the room occupancy tax revenues and fees, specifically focusing on the formula for distribution to municipalities. The bill emphasizes the need for fair and efficient allocation of tax revenues raised through room occupancy taxes, ensuring that these funds are directed to the municipalities where the revenue is generated. It aims to enhance transparency and accuracy in how municipalities are funded through these taxes, which are critical for local government operations.

Contention

Details from legislative discussions indicate that there may be points of contention regarding how the formula for distribution is modified and the implications this has on existing funding levels for some municipalities. The proposed study could reveal barriers to effective data collection and reporting by taxpayers, which might lead to discussions on reforming current systems. Additionally, there may be debates surrounding the proposed $2 municipal occupancy fee, including its potential impact on tourism and local economies, and how municipalities would manage and report this fee.