NH House passes bill for local option hotel fee

CONCORD — Municipalities would have the opportunity to raise revenue through a fee of up to $2 placed on the rental of hotel rooms under a bill approved by the New Hampshire House of Representatives on Thursday.

The bill, HB 641, which passed 209-146, now is to be considered by the state Senate.

Under the bill, money raised by the fee is to be used to “augment funding for the cost of municipal services associated with the increase in tourism and transient traffic.”

Hotelier Rusty McLear, owner of Mill Falls at the Lake in Meredith, said in a telephone interview Thursday that he opposes the legislation.

“For a state that prides itself on its low taxes, one of the highest things taxed is the tourism industry, 9 percent,” he said.

McLear said that, if state leaders think towns and cities are not receiving enough from the rooms and meals tax, they should share more of that tax revenue with municipalities, rather than increase the tax.

“To continue to tax one industry at this level is, I think, unwise at best,” he said.

He also mentioned that more than half his guests voluntarily pay a $2 fee toward a fund for beautification of the town, and many might no longer do so if the bill becomes law.

Before the House vote, Rep. Tom Laughman, D-Hampton, spoke in favor of the legislation.

He said the portion of the meals and rooms tax the state shares with municipalities has declined even as service and infrastructure demands on cities and towns have grown.

“New Hampshire is on an unsustainable path of putting increased pressure on property tax payers in various cities and towns,” Laughman said.

“This local option would provide a reliable, stable stream for those municipalities under the greatest pressure to provide regional services free from the political forces of state appropriation processes.”

He urged his colleagues to factor in a “key consideration.”

“Every dollar in municipal revenue generated from out-of-state tourists or business travelers through this optional fee is a dollar you will not need to raise through your property taxpayers,” he said.

CONCORD — Municipalities would have the opportunity to raise revenue through a fee of up to $2 placed on the rental of hotel rooms under a bill approved by the New Hampshire House of Representatives on Thursday.

The bill, HB 641, which passed 209-146, now is to be considered by the state Senate.

Under the bill, money raised by the fee is to be used to “augment funding for the cost of municipal services associated with the increase in tourism and transient traffic.”

Hotelier Rusty McLear, owner of Mill Falls at the Lake in Meredith, said in a telephone interview Thursday that he opposes the legislation.

“For a state that prides itself on its low taxes, one of the highest things taxed is the tourism industry, 9 percent,” he said.

McLear said that if state leaders think towns and cities are not receiving enough from the rooms and meals tax, they should share more of that tax revenue with municipalities, rather than increase the tax.

“To continue to tax one industry at this level is, I think, unwise at best,” he said.

He also mentioned that more than half his guests voluntarily pay a $2 fee toward a fund for beautification of the town, and many might no longer do so if the bill becomes law.

Before the House vote, Rep. Tom Laughman, D-Hampton, spoke in favor of the legislation. He said the portion of meals and rooms tax the state shares with municipalities has declined even as service and infrastructure demands on cities and towns have grown.

“New Hampshire is on an unsustainable path of putting increased pressure on property tax payers in various cities and towns,” Laughman said.

“This local option would provide a reliable, stable stream for those municipalities under the greatest pressure to provide regional services free from the political forces of state appropriation processes.”

He urged his colleagues to factor in a “key consideration.”

“Every dollar in municipal revenue generated from out-of-state tourists or business travelers through this optional fee is a dollar you will not need to raise through your property taxpayers,” he said.

The Lakes Region Tourism Association keeps a list that shows more than 5,000 hotel rooms comprising mostly central New Hampshire, but also many from towns in the North Country and Capital Region.

The list, which LRTA Executive Director Amy Landers cautioned “is not 100 percent,” shows Laconia and the Weirs Beach area account for 645 rooms. The list also shows 282 rooms in Gilford, 203 in Meredith and 317 in Tilton.

The bill had the backing of the New Hampshire Municipal Association, which represents cities and towns in the state.

To contact Rick Green, email rick@laconiadailysun.com.