{"id":6948,"date":"2021-05-24T01:18:40","date_gmt":"2021-05-24T05:18:40","guid":{"rendered":"https:\/\/granitestatetaxpayers.org\/gst\/?p=6948"},"modified":"2021-05-24T01:19:23","modified_gmt":"2021-05-24T05:19:23","slug":"sb-99-the-meals-and-rooms-tax-and-the-budget","status":"publish","type":"post","link":"https:\/\/granitestatetaxpayers.org\/gst\/sb-99-the-meals-and-rooms-tax-and-the-budget\/","title":{"rendered":"SB 99, the Meals and Rooms Tax and the Budget"},"content":{"rendered":"<p><strong>SB 99, the Meals and Rooms Tax and the Budget<\/strong><br \/>\nby <em>Granite State Taxpayers<\/em> Secretary Dan McGuire<\/p>\n<p><strong><a href=\"http:\/\/www.gencourt.state.nh.us\/rsa\/html\/V\/78-A\/78-A-mrg.htm\" rel=\"noopener\" target=\"_blank\">RSA 78-A<\/a> specifies New Hampshire&#8217;s tax on restaurant meals, hotel rooms and car rentals. <\/strong><br \/>\nCurrently 9%, the House-passed budget for the next biennium (which starts July 1) reduces the tax to 8.5% as of October 1. The tax was first codified in 1967.  It is the one of the most significant statewide taxes.<br \/>\nIt brings in over $300 million per year.  <\/p>\n<p><strong>In 1995 the legislature added a provision to distribute 40% of this revenue to cities and towns based on population.<\/strong><br \/>\nThis lasted until 2010.  All state budgets since then have simply allocated fixed amounts to municipalities.<br \/>\nThe latest budget had the amount at roughly 22%, or some $69 million.<\/p>\n<p>Legislators are keenly aware, as are nearly all citizens, of our significant property tax burden, primarily the result of runaway school spending despite a declining school-age population.  Municipal assistance like that in the meals and rooms tax is intended to mitigate property taxes, but some would argue <em>it merely incentivizes local spending<\/em>.<\/p>\n<p><strong>To further address this problem, the Senate unanimously passed <a href=\"http:\/\/gencourt.state.nh.us\/bill_status\/Results.aspx?q=1&amp;txtbillnumber=sb99&amp;txtsessionyear=2021\">Senate Bill 99<\/a>.<\/strong><br \/>\nSB 99 intended to restore the full 40% meals and rooms revenue sharing.<br \/>\nThe bill was then tabled in the Senate and will presumably be part of the Senate&#8217;s version of the budget.<\/p>\n<p><strong>In our opinion, while its intentions are excellent, SB 99&#8217;s method is flawed. <\/strong><br \/>\nThere is nothing magical about the 40% number. It was implemented 25 years ago. Budgets should not run on autopilot. Clearly our current legislature has a better handle on today&#8217;s fiscal matters than anything passed in 1995. <\/p>\n<p><strong>If the state wants to lower property taxes, the best way is to simply cut the statewide property tax. <\/strong><br \/>\nTo their credit, that is exactly what the House did in their budget when they lowered the statewide property tax by $100 million. This change will directly benefit taxpayers&#8217; property tax bills, rather than first getting filtered through the municipal budget process. <\/p>\n<p><strong>The Senate should follow the House&#8217;s lead.<\/strong><\/p>\n<p>Posted by <em>GST<\/em> Secretary Dan McGuire<\/p>\n<p>&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n<a href=\"http:\/\/gencourt.state.nh.us\/house\/members\/default.aspx\" rel=\"noopener\" target=\"_blank\">Click here to find our House Member and Senator to express your opinion.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SB 99, the Meals and Rooms Tax and the Budget by Granite State Taxpayers Secretary Dan McGuire RSA 78-A specifies New Hampshire&#8217;s tax on restaurant meals, hotel rooms and car rentals. Currently 9%, the House-passed budget for the next biennium (which starts July 1) reduces the tax to 8.5% as of October 1. The tax [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":342,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[6,1,7],"tags":[45,25],"class_list":["post-6948","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislation","category-opinion","category-secial-alerts","tag-budget","tag-taxes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SB 99, the Meals and Rooms Tax and the Budget - Granite State Taxpayers<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/granitestatetaxpayers.org\/gst\/sb-99-the-meals-and-rooms-tax-and-the-budget\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SB 99, the Meals and Rooms Tax and the Budget - Granite State Taxpayers\" \/>\n<meta property=\"og:description\" content=\"SB 99, the Meals and Rooms Tax and the Budget by Granite State Taxpayers Secretary Dan McGuire RSA 78-A specifies New Hampshire&#8217;s tax on restaurant meals, hotel rooms and car rentals. Currently 9%, the House-passed budget for the next biennium (which starts July 1) reduces the tax to 8.5% as of October 1. 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