Committee Summary for House Ways and Means (01/14/2026)

Bill/Time	Type	Title	Sponsor
HB1063 00:09:13.600 - 9:07:59 AM	Public Hearing	reducing the amount of meals and rooms taxes operators can retain.	Petrigno, Peter(D)[F]2025
HB1068 00:47:42.640 - 9:46:28 AM	Public Hearing	relative to the meaning of "hotel" as it pertains to meals and rooms taxation.	Stavis, Laurel(D)[CT]2025
HB1090 01:05:39.760 - 10:04:25 AM	Public Hearing	subjecting certain motor vehicles to meals and rooms taxes.	Spahr, Terry(D)[D-]2025
HB1474 2024-1453h 01:40:34.080 - 10:39:20 AM	Public Hearing	relative to the formula of distribution of revenue from the meals and rooms tax.	McGuire, Dan(R)[A]2025

HB1063: Representative Peter Petrino, Milford Support00:09:13.600 - 9:07:59 AM; Representative Petrino testified in support of HB 1063, expressing concern over the state's revenue shortages, budget cuts, and low funding for public schools, universities, child protection, and Medicaid. He explained that the bill reduces the vendor discount for hotels, restaurants, and car rentals from 3% to 1.5% on the 8.5% meals and rooms tax, generating approximately $6.5 million in additional revenue without raising taxes. He noted that neighboring states like Maine, Vermont, Massachusetts, Connecticut, and Rhode Island do not offer this discount and still have thriving businesses, despite having income taxes. Petrino addressed concerns about small businesses by explaining that large chains with multiple franchises could exploit exemptions, and shared personal anecdotes about restaurants charging higher credit card fees and mistakenly applying a 9% tax rate. He emphasized the principle of not subsidizing large corporations like Marriott during fiscal hardship.
HB1063: Mike Summers, President CEO, New Hampshire Lodging and Restaurant Association Oppose00:24:16.240 - 9:23:02 AM; Mike Summers opposed HB 1063, clarifying that the 3% discount applies only to the tax portion (e.g., $3 on a $100 meal), covering credit card processing fees, which are now the third largest expense for members after rent and labor, ranging from 3-6% especially for small businesses. He described the administrative burden of tax filing, including reconciling sales data and handling high chargeback rates in the restaurant industry, which incur additional fees post-filing without easy recoupment. Summers highlighted the discount as an incentive for timely filing (over 90% compliance), preventing a 'death spiral' of penalties for struggling businesses. He noted most hotels are small franchises, not corporate-owned, and shared data on low profit margins (3-5% for restaurants, e.g., $25 profit on a $500 steak dinner). He cautioned against the cut amid ongoing post-pandemic challenges like staffing shortages and price sensitivity, suggesting it would harm small businesses without benefiting state revenue proportionally. Summers mentioned emerging trends like laws exempting credit card fees on taxes and tips, and emphasized that good operators escrow tax funds, not using them for liquidity.
HB1063: Michael Cahill, Representative for Rockingham District 10, Newfields and Newmarket Support00:38:56.320 - 9:37:42 AM; Michael Cahill supports the bill to reduce the commission on the meals and rooms tax from 3% to 1.5%. He explains the historical context of the tax from 1967, aimed at tourists, and notes that many are unaware of the commission. He argues that credit card swipe fees are a normal business expense and should not be subsidized by the state. Small businesses in his town indicate they wouldn't exceed a $100 monthly cap, and the revenue helps municipalities reduce property taxes. He appreciates the hospitality industry's importance but urges cutting the commission as a step toward better fiscal decisions.
HB1063: Jennifer Ramsey, Tax Policy Council, Department of Revenue Administration Information Only00:43:17.359 - 9:42:03 AM; Jennifer Ramsey provides administrative input on HB 1063, requesting a 90-day effective date after passage instead of July 1 to allow time for updating forms, systems, and notifying operators. She notes that reducing the commission from 3% to 1.5% is not a heavy lift but a tiered approach would add complexity for collections, audits, and operators. Regarding tiered taxation, she clarifies that the proposal tiers the commission, not the tax rate, and suggests consulting the attorney general on constitutional issues.
HB1068: Laurel Stavis, Representative for Grafton District 13, Lebanon Ward One Information Only00:47:42.640 - 9:46:28 AM; Laurel Stavis presents HB 1068 as an effort to modernize RSA 78 language to address emerging housing types like attached and detached ADUs used as short-term rentals (less than 185 days occupancy). She aims to ensure fairness in taxation and capture additional revenue without new taxes, by applying the hotel definition and including rooms rented via facilitators. This updates laws for new technologies like AI-driven platforms, clarifying that such properties are taxable under the meals and rooms tax.
HB1068: Peter Rondo, President, New Hampshire Vacation Rental and Tourism Association, Brooklyn NH Oppose00:52:54.640 - 9:51:40 AM; Peter Rondo opposes HB 1068, arguing it creates confusion by potentially reclassifying short-term rentals as commercial, contradicting existing state law (RSA 48A) and case law (Conway v. Kudrich, 2023) that deem them residential use. He notes that platforms like Airbnb and VRBO already collect and remit meals and rooms taxes automatically. Non-platform rentals must self-report, and the bill blurs lines without clear benefits, as taxes are already paid.
HB1068: Jennifer Ramsey, Tax Policy Council, Department of Revenue Administration Information Only00:58:47.680 - 9:57:33 AM; Jennifer Ramsey states that the Department of Revenue Administration already taxes short-term rentals in line with the bill's intent, viewing it as clarifying definitions. She expresses concern that redefining short-term rentals to focus on online platforms might inadvertently exempt non-platform rentals from advertising provisions, affecting enforcement for operators not using such services.
HB1068: Jennifer Ramsey, Tax Policy Council, Department of Revenue Administration Information Only01:00:37.680 - 9:59:23 AM; Ramsey discusses potential issues with the bill's language regarding advertising requirements for rental properties and the complex history of M&R tax definitions, warning of unintended consequences. She explains the critical definition of 'hotel' and its expansions, notes that short-term rental definitions apply only to advertising, and highlights the exclusion for permanent residents. She expresses willingness to work with the committee to clarify and improve definitions without creating problems.
HB1090: Representative Terry Spar, Hanover Support01:05:39.760 - 10:04:25 AM; Spar introduces the bill as a cleanup of the M&R tax statutes, assigned by Representative Almy. He explains changes: exempting separately stated highway tolls (including electronic ones) from tax, adding boat rentals on waterways to ensure consistency with land vehicle rentals, simplifying tax rounding to the nearest nickel due to phasing out pennies, and updating dates. He notes the addition of waterways as a policy consistency measure, originally included but excised in 1999.
HB1090: Jody Grimbleis, New Hampshire Marine Trades Association Oppose01:16:57.840 - 10:15:43 AM; Grimbleis opposes section two adding M&R tax to boat rentals, citing New Hampshire's boating economy generating $1.4 billion annually, supporting 250 businesses and 6,000 jobs. She argues it would harm tourism, reduce demand in price-sensitive markets, burden marinas unaccustomed to tax collection, increase costs for families accessing waterways, and make NH's 8.5% rate higher than neighboring states' 5-6.5%. She emphasizes boat rentals as entertainment experiences, not comparable to car rentals, and requests opposition to maintain the NH tax advantage.
HB1090: Mike Summers, New Hampshire Lodging and Restaurant Association Information Only01:25:52.560 - 10:24:38 AM; Summers raises a question about whether tickets for cruise ship rides on Lake Winnipesaukee and Lake Sunapee qualify as 'rentals' subject to the new tax on boat rentals, noting uncertainty in the language and suggesting committee deliberation.
HB1090: Jennifer Ramsey, Tax Policy Council, Department of Revenue Administration Information Only01:27:42.800 - 10:26:28 AM; Ramsey highlights implementation concerns: toll charges may already be excluded by operators for pass-throughs but flat fees like transponder rentals should be included, suggesting rule clarifications; rounding changes could lead to nickel taxes on very small transactions and inconsistencies between meals and rooms/vehicles, complicating POS software; and advancing the distribution date to July 1, 2026, before the effective date of April 1, 2027, could require retroactive recalculations, recommending July 1, 2027 instead.
HB1474 2024-1453h: Representative Dan McGuire, town of Epsom Support01:40:34.080 - 10:39:20 AM; Representative Maguire introduces HB 1474, explaining that it maintains the 30% distribution of meals and rooms tax revenue to municipalities but modifies the allocation method from a flat per capita basis to one adjusted by the municipality's taxable property per capita. This aims to provide more funding to communities with lower fiscal capacity, such as Claremont ($117,000 per capita), while reducing or eliminating subsidies for wealthier areas like Newcastle ($1.6 million per capita). The bill uses a ramp formula where municipalities below the statewide average of $270,000 per capita receive more, and those above twice the average ($540,000) receive none. He notes that 933,000 people (about two-thirds of the population) would benefit with increased funding, compared to 426,000 who would receive less. Maguire provides spreadsheets sorted by benefit and alphabetically for easy lookup, urging committee members to support the bill if their community gains. He discusses the amendment, which replaces fixed numbers with a formula based on statewide average equalized property value per adjusted population, making it automatic and adaptable without annual changes. He addresses questions on population percentages (roughly two-thirds benefit), the formula in simple terms (statewide average vs. municipal per capita, with a ramp for lower-capacity areas), and outliers like Success (high value, low population, mostly forest land, which would no longer receive subsidies).
HB1474 2024-1453h: Representative Dan McGuire, Epsom Information Only01:53:57.760 - 10:52:43 AM; Explains the formula for distributing rooms and meals tax revenue based on taxable property values compared to twice the statewide average. Details how the cutoff is determined, using examples from towns like Errol and Guilford. Describes the calculation involving subtraction of town values from the average, summing factors, and multiplying by population proportions to create a ramp for subsidies.
HB1474 2024-1453h: Representative Army Information Only01:56:49.119 - 10:55:35 AM; Expresses relief at understanding the formula after initial confusion. Raises a question about the reduction in community population estimates on lines 14 to 19 of page two, seeking clarification on the methodology.
HB1474 2024-1453h: Representative Dan McGuire, Epsom Information Only01:56:49.119 - 10:55:35 AM; Responds to the population adjustment question, explaining that initial census data seemed off for towns like Durham, which appear wealthier due to non-taxable housing like prisons and universities. Decides to exclude populations in non-taxable housing (e.g., prisoners, students) to focus on taxable housing residents, making the distribution feel more accurate. Notes this affects totals minimally, with about 50,000 people in non-taxable housing, and points to state totals in the spreadsheet for verification.
HB1474 2024-1453h: Representative Opel Oppose02:00:46.960 - 10:59:32 AM; Acknowledges that the three towns he represents would benefit but expresses concern over using property as an arbitrary and unfair measure, similar to past education funding formulas that pit towns against each other. Highlights uncontrollable factors like the presence of Dartmouth in Hanover versus Canaan, or lack of major lakes or coastlines. Questions the population correction, noting it excludes students in college towns like Durham, Plymouth, Hanover, and Keene who contribute to meals taxes through food purchases.
HB1474 2024-1453h: Representative Dan McGuire, Epsom Information Only02:02:59.119 - 11:01:45 AM; Begins to respond to concerns about subsidies, questioning the purpose of giving them and suggesting an alternative of keeping statewide tax money for state purposes instead of distributing to towns.
HB1474 2024-1453h: Representative Dan McGuire, Epsom Support02:03:45.040 - 11:02:31 AM; Representative Maguire continues discussing the bill, arguing that municipalities should handle their own finances but the legislature helps those in need. He uses examples like Newcastle, which receives no state aid due to its fiscal capacity, and compares it to Medicaid distribution based on need. He explains the equalized assessed valuation from DRA data to make towns comparable. He addresses concerns about resort towns' higher costs from tourism, noting that business properties in those areas generate tax revenue, and the legislature has not allocated rooms and meals tax based on collection location. Regarding Portsmouth and Hampton, he acknowledges they lose under the bill but points out their low tax rates compared to other towns, making him less sympathetic. He anticipates a 2:1 vote in favor based on representative districts proportional to population.
HB1474 2024-1453h: Unidentified Representative (Spar) Information Only02:06:10.800 - 11:04:56 AM; Questions the witness on the difference between total and equalized assessed valuation, confirming it comes from DRA and explaining the equalization process for comparable town values.
HB1474 2024-1453h: Unidentified Representative Information Only02:07:16.079 - 11:06:02 AM; Raises concerns about resort towns with high real estate values facing higher service costs from tourism, such as roads, sewer, policing, and costs from exemptions like students, jails, and nursing homes.
HB1474 2024-1453h: Representative Malloy Oppose02:08:21.040 - 11:07:07 AM; Expresses concern about towns like Portsmouth and Hampton losing rooms and meals money despite providing services to hotels and restaurants. Questions how to justify the bill to them, noting their repeated requests for recouping funds. Follows up on the 2:1 vote prediction, asking if it's based on towns or representatives.
HB1474 2024-1453h: Representative Elme Information Only02:13:26.800 - 11:12:12 AM; Expresses worry about high property tax rates in their city due to low housing sales volume leading to skewed valuations, forcing people to move out of state to benefit. Notes surrounding areas have lower rates and questions adjustment over time.
HB1474 2024-1453h: Margaret Burns, NHMA Executive Director Information Only02:17:09.120 - 11:15:55 AM; NHMA has no position on HB 1474 as introduced due to creating winners and losers among members. Raises points on reverting population counts to pre-1977 excluding institutional settings like nursing homes and prisons, a significant change for some. Notes under the amendment, 33 municipalities lose all meals and rooms tax aid, 49 lose 50%, totaling 109 losers, which is alarming. Highlights the 2021 increase to 30% distribution was impactful, and NHMA might oppose if amended as proposed.
HB1474 2024-1453h: Representative Elmy Information Only02:20:43.920 - 11:19:29 AM; Questions Margaret Burns on the spreadsheet, noting only places starting with Guilford lose all, about 20-25, and others depend on cutoff.
HB1474 2024-1453h: Representative Cahill Oppose02:20:43.920 - 11:19:29 AM; Views the meals and rooms tax as revenue sharing promised at 60-40 in 1967, never reaching 40%, now over 30%. Calls it revenue for towns to use as they see fit, not a subsidy. Opposes winners and losers approach, prefers keeping it simple per capita. Notes even small amounts go to local governing bodies.
HB1474 2024-1453h: Representative Cahill, Newmarket and Newfields Support02:24:42.000 - 11:23:28 AM; Sponsors HB 1480 to restore the 9% meals and rooms tax rate. Cites fiscal note showing increased revenue to state and municipalities. Argues the 2019 cut to 8.5% from 9% did not benefit businesses or customers but reduced revenues, as acknowledged by Governor Sununu. Provides examples of minimal savings to consumers (e.g., 20 cents on $40 dinner) and loss to business commissions (e.g., $135 on $1M sales). Notes post-COVID pent-up demand could have generated more revenue at 9%. Urges support to restore the rate, as the cut helped no one and harmed many.
HB1474 2024-1453h: Representative Peter Petrino, Milford Support02:29:33.600 - 11:28:19 AM; Representative Petrino shared a personal experience visiting Lincoln and Woodstock during fall foliage season, noting the high volume of tourists filling hotels, restaurants, and attractions like the Flume Gorge. He highlighted the lost revenue from reducing the meals and rooms tax from 9% to 8.5%, emphasizing the need for this income. He acknowledged that low taxes benefit businesses but argued that patrons visit due to location and attractions, not tax differences, and businesses aren't crossing borders for tax advantages. He referenced a restaurant that continued charging 9% without impact and expressed concern about prioritizing tax cuts over supporting free and reduced school meals for children in need. In response to questions, he suggested restoring the tax to 9% at minimum and reviewing the 3% collection commission to generate more revenue.
HB1474 2024-1453h: Mike Summers, President CEO, New Hampshire Lodging and Restaurant Association Oppose02:32:57.520 - 11:31:43 AM; Mike Summers opposed increasing the tax, noting that at 8.5%, New Hampshire has the second highest rate in New England, and returning to 9% would tie it with Vermont for the highest. He argued this would send a negative message during a time when businesses are struggling to attract customers post-pandemic, dispelling the myth of booming business by explaining narrower service windows and fewer overall guests. He pointed out that over 50% of the tax is paid by New Hampshire residents, making it a tax on citizens. He defended the business environment in New Hampshire as a draw for new operations, citing examples from restaurant owners preferring the state over others. In questions, he addressed staffing improvements in niche industries like those with part-time college workers and geographic specifics.
HB1474 2024-1453h: Representative Maguire Oppose02:39:03.040 - 11:37:49 AM; Representative Maguire opposed the bill and tax increases, sharing that as a restaurant owner, the state takes 8.5% while his profit margin is lower. He wouldn't prioritize lowering this tax if reducing taxes, citing an economics professor's data that 80% of the rooms and rentals portion and 40% of the meals portion are paid by out-of-state residents, making it a form of taxation without representation on non-residents.
HB1474 2024-1453h: Drew Klein, President, Josiah Bartlett Center for Public Policy Oppose02:41:28.160 - 11:40:14 AM; Drew Klein provided data on the rooms and meals tax, showing revenue trends pre- and post-pandemic and the 2021 cut from 9% to 8.5%, with a drop followed by recovery to above 2021 levels by 2025 at $339 million. He noted New Hampshire's high rate compared to other New England states (Vermont 9%, Maine 8%, Massachusetts 6.25% plus local option). He argued against tying with Vermont for the highest rate, as it impacts overall tax burden and competitiveness, advocating for lower rates to maintain the New Hampshire Advantage.
HB1474 2024-1453h: Peter Rondo, President, New Hampshire Vacation Rental and Tourism Association Oppose02:46:04.960 - 11:44:50 AM; Peter Rondo opposed the tax increase, describing the industry as in a rebound phase with rising costs. He requested delaying such decisions until the industry stabilizes, noting that additional taxes pass costs to consumers and could harm profitability in hotels, restaurants, and short-term rentals, potentially turning businesses into unprofitable ventures.

Janigian, John(Chairman)(R)[B+]2025	Ohm, Bill(Clerk)(R)[B+]2025	Ulery, Jordan(V Chairman)(R)[A-]2025
Almy, Susan(D)[F]2025	Oppel, Thomas(D)[F]2025	Smith, Steven(R)[B]2025
Malloy, Dennis(D)[CT]2025	Schamberg, Thomas(D)[CT]2025	Southworth, Thomas(D)[F]2025
Tierney, James(R)[B]2025	Cole, Brian(R)[A-]2025	Aures, Cyril(R)[B+]2025
Bolton, Bill(D)[F]2025	Elberger, Susan(D)[F]2025	Smith, Geoffrey(D)[D-]2025
Soti, Julius(R)[A+]2025	Spahr, Terry(D)[D-]2025	Bryer, Scott(R)[B]2025
Murphy, Mary(R)[B+]2025	Ford, Mary(R)[B+]2025