On January 14, 2024, the New Hampshire Legislature introduced Senate Bill 63-FN, aimed at modifying the funding structure for the Division of Travel and Tourism. The bill seeks to adjust the calculation of the Meals and Rooms Tax Revenue (M&R) that determines the budget for the Division, which includes the Travel and Tourism Development Fund.

Currently, the Division is funded at a minimum of 3.15 percent of the net income from M&R, calculated after deducting administrative costs and transfers to the Education Trust Fund and the Municipal Revenue Fund. Senate Bill 63-FN proposes to include the transfer to the Municipal Revenue Fund back into the net income calculation specifically for the purpose of determining the Division's funding. This adjustment could potentially increase the Division's funding from an estimated $10.2 million to approximately $14.3 million, representing a $4.1 million increase.

Despite its potential financial implications, the bill does not authorize new funding or positions and is projected to have no immediate fiscal impact until the FY 2028-2029 operating budget. The Department of Revenue Administration has indicated that the bill's effects will not be felt until after FY 2025, as it is assumed the changes will not take effect until then.

The introduction of this bill has sparked discussions among stakeholders, particularly regarding its long-term impact on tourism funding in New Hampshire. While proponents argue that the increased funding could enhance tourism initiatives and economic development, critics express concerns about the sustainability of such funding adjustments and the implications for other budgetary priorities.

As the bill progresses through the legislative process, it will be essential to monitor debates and any amendments that may arise, as well as the broader economic and social implications tied to the funding of the Division of Travel and Tourism. The outcome of Senate Bill 63-FN could significantly influence the state's tourism strategy and its economic landscape in the coming years.