New Hampshire 2026 Regular Session

New Hampshire House Bill HB1063

Introduced

11/12/25

Refer

11/12/25

Report DNP

2/4/26

Report Pass

2/4/26

Caption

Reducing the amount of meals and rooms taxes operators can retain.

Impact

The bill is expected to impact the state's revenue streams significantly. An analysis based on FY 2025 data suggests that if the bill is enacted, the state could see an indeterminable increase in revenue, particularly impacting the General Fund and the Education Trust Fund. In FY 2025, operators retained about $12.8 million; under the new commission rate, this would reduce to approximately $6.4 million, leading to an estimated $6.4 million increase in state revenue by the time the provisions take effect. Moreover, this revenue would be augmented as it might influence the Municipal Revenue Fund as well.

Summary

House Bill 1063 aims to reduce the commission that operators are allowed to retain from the meals and rooms tax. Specifically, the bill proposes to lower the percentage from 3% to 1.5% for operators who file their tax returns electronically and on time with the Department of Revenue Administration. This change is set to take effect on July 1, 2026. Proponents of the bill argue that the reduction is aimed at increasing revenue for the state by allowing a reallocation of funds that would have been retained by operators under the current rate.

Sentiment

The sentiment regarding HB 1063 appears to focus on the long-term financial implications for both the state and local entities. Supporters view the bill as a necessary step for better financial management and an opportunity to boost state-derived revenues. There may be some unease among operators affected by the reduced retention rate, as it could limit their earnings; however, proponents argue that the potential increase in revenue is critical for addressing broader state funding needs.

Contention

Notable points of contention surrounding the bill include the precise impact on operators and whether the revenue assumptions hold true over time. Critics may raise concerns about the financial burden on those in the hospitality industry while supporters believe the financial benefits to the state justify the changes. There are discussions of how these adjustments will play out in real terms, including the timing of revenue recognition once the new commission rates take effect in 2026.

Companion Bills

No companion bills found.

Previously Filed As

NH HB155

Reducing the rate of the business enterprise tax.

NH HB596

Relative to reporting requirements for entities that collect meals and rooms taxes.

NH HB703

Relative to prohibiting school districts from denying meals to students with unpaid meal balances, and making an appropriation therefor.

NH HB696

Relative to the application of utility property taxes and statewide education property taxes to electric generating facilities.

NH HB583

Relative to state participation in the Medicaid direct certification program for free and reduced price school meals.

NH HB503

Amending how revenues from taxes are allocated to the education trust fund.

NH SB204

Relative to the responsibility of local school districts to provide meals to students during school hours, reimbursing schools for meals provided to students at no cost, and making an appropriation therefor.

NH HB623

Relative to prohibiting corporations from purchasing single-family homes for a certain amount of time.

NH SB277

Relative to the application of utility property taxes and statewide education property taxes to electric generating facilities.

NH HB563

Relative to the cost of an opportunity for an adequate education, extraordinary need grants, fiscal capacity disparity aid, and determination of education grants.