Rep. Brodie Deshaies: Meals and Room Tax rate reduction will mean increased revenue sharing

To The Daily Sun,

This time, I will write about another bill I prime sponsored: HB 1204. HB 1204 will reduce the Meals and Rooms Tax rate and increase Meals and Rooms Tax revenue sharing with municipalities. This bill will decrease Granite Stater’s property taxes while simultaneously decreasing small business taxes.

HB 1204 will re-establish the state’s initially promised Meals and Rooms Tax revenue sharing percentage of 40% with municipalities. Before the previously passed budget, the state only shared about 20% of Meals and Rooms Tax revenue with municipalities — half the initially promised percentage. The recently passed budget increased the revenue sharing percentage to 30%. That is a good move in the correct direction, and it will help many towns and cities, but it is still not the initially promised amount of 40%. I believe the state should keep its original promise.

HB 1204 will also decrease the Meals and Rooms Tax rate. Before the recently passed budget, New Hampshire had the highest “rentals” tax in all of New England at 9.01%, making our tourism industry less competitive. Under the recently passed budget, the Meals and Rooms Tax will decrease to 8.5%, a 5.7% decrease. This rate decrease has not caused us to lose any revenue because of increased tourism. Because of the revenue sharing percentage increase, municipalities are receiving about 40% more money from this tax.

HB 1204 will decrease the Meals and Rooms Tax rate to 7.9%, meaning a 12.3% Meals and Rooms Tax rate reduction over two years. This tax rate decrease will not force any spending reductions because of our historic revenue surplus. However, because the revenue sharing percentage increases to 40%, NH’s municipalities will receive $23.5 million more from the state. These valuable dollars can be used for local budgets and offset our property taxes.

As always, if you have any questions or concerns, please email me at BrodieforNH@gmail.com or call me at 603-387-4210. Thank you for reading.

Rep. Brodie Deshaies

Wolfeboro