New Hampshire HB 1480: raising the meals and rooms tax rate.

Bill Text

HB 1480-FN - AS INTRODUCED

2026 SESSION

 26-2842

 04/09

HOUSE BILL 1480-FN

AN ACT raising the meals and rooms tax rate.

SPONSORS: Rep. Cahill, Rock. 10

COMMITTEE: Ways and Means

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ANALYSIS

 This bill increases the meals and rooms tax rate.

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Explanation: Matter added to current law appears in bold italics.

 Matter removed from current law appears [in brackets and struckthrough.]

 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

 26-2842

 04/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty-Six

AN ACT raising the meals and rooms tax rate.

Be it Enacted by the Senate and House of Representatives in General Court convened:

 1 Imposition of Tax; Tax on Meals and Rooms. Amend RSA 78-A:6 to read as follows: 

 78-A:6 Imposition of Tax.

 I. A tax of [8.5] 9 percent of the rent is imposed upon each occupancy. 

 II. A tax is imposed on taxable meals based upon the charge therefor as follows: 

 (a) Four cents for a charge between $.36 and $.37 inclusive; 

 (b) Five cents for a charge between $.38 and $.50 inclusive; 

 (c) Six cents for a charge between $.51 and $.62 inclusive; 

 (d) Seven cents for a charge between $.63 and $.75 inclusive; 

 (e) Eight cents for a charge between $.76 and $.87 inclusive; 

 (f) Nine cents for a charge between $.88 and $1.00 inclusive; 

 (g) [Eight and a half] Nine percent of the charge for taxable meals over $1.00, provided that fractions of cents shall be rounded up to the next whole cent. 

 II-a. A tax of [8.5] 9 percent is imposed upon the gross rental receipts of each rental. 

 III. The operator shall collect the taxes imposed by this section and shall pay them over to the state as provided in this chapter. 

 2 Effective Date. This act shall take effect 60 days after its passage.

 LBA

 26-2842

 12/1/25

HB 1480-FN- FISCAL NOTE

AS INTRODUCED

AN ACT raising the meals and rooms tax rate.

FISCAL IMPACT: 

 Estimated State Impact

FY 2026

FY 2027

FY 2028

FY 2029

 Revenue

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 Revenue Fund(s)

General Fund and Education Trust Fund

 Expenditures*

$0

$0

Indeterminable Increase

Indeterminable Increase

 Funding Source(s)

M&R Municipal Revenue Fund

 Appropriations*

$0

$0

$0

$0

 Funding Source(s)

None

 *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill

 Estimated Political Subdivision Impact

FY 2026

FY 2027

FY 2028

FY 2029

 County Revenue

$0

$0

$0

$0

 County Expenditures

$0

$0

$0

$0

 Local Revenue

$0

$0

Indeterminable Increase 

Indeterminable Increase

 Local Expenditures

$0

$0

$0

$0

METHODOLOGY:

This bill increase the Meals and Rooms (M&R) rate from 8.5% to 9.0%. 

The Department states this bill will increase General Fund and Education Trust Fund revenue and increase local revenue from the increased distribution from the Meals and Rooms (M&R) Municipal Revenue Fund. The Department is not able to predict the exact fiscal impact of increasing the M&R rate to 9.0% as it cannot predict what the M&R revenues will be in future years. The Department is able to provide a static analysis of the potential impact using FY 2025 data and the following assumptions and methodology:

• The fiscal impact would begin October 2026 assuming the bill takes effect by September 1, 2026.
• M&R tax collected on a gross cash basis during FY 2025 was $488,242,814. Operators retained commissions of $12,866,460 (2.61% of the total collected based on data reported by Operators in FY 2025. The total tax collected by operators and remitted back to the State for FY 2025 was $475,476,354 ($488,242,814 gross M&R - $12,866,460 commission retained). 
• The FY 2025 M&R tax base was $5,744,033,260 ($488,242,814/ 8.5%). 
• The FY 2025 M&R tax base is then multiplied by the new proposed 9.0% tax rate, yielding a new estimated amount of tax collected by operators. Using the same rate of commissions from FY 2025, the commission retained under the new rate is calculated and subtracted from the new liability amount. 

The next two tables show the potential increase of M&R revenue and the split between the General Fund and Education Trust Fund. The potential increases are prior to any transfer to the M&R Municipal Revenue Fund. The third table depicts this impact.

 M&R Tax - Static Analysis using FY 2025 Revenue

 Fiscal Year 

M&R Revenue - Current Law 

Estimated FY Revenue 

Estimated Fiscal Impact Per Fiscal Year 

Cumulative Fiscal Impact 

 2027

 $475,500,000 

 $496,400,000 

 $20,900,000

 $20,900,000

 2028 and onwards

 $475,500,000 

 $503,500,000 

 $28,000,000

 $48,900,000

 M&R Tax - Static Analysis using FY 2025 Revenue (Split between General Fund and Educatio