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Committee hears proposal to shorten short‑term hotel threshold to 30 days for meals & rooms tax
Summary
Lawmakers discussed an amendment to HB 1068 to define short‑term hotel stays as 30 days (rather than six months) to align with neighboring states and ease recruitment of traveling workers. DRA said it lacks immediate revenue estimates; committee postponed final action pending data.
The committee opened a work session on HB 1068, legislation that would change the definition of "hotel" and the treatment of meals and rooms (M&R) tax refunds for short‑term occupancies.
Supporters said lowering the short‑term threshold to 30 days — consistent with nearby states such as Massachusetts — would make New Hampshire more competitive for traveling professionals like nurses and temporary workers who otherwise face higher M&R charges. The chair summarized: "The amendment this amendment...proposes to change it to 30 days for short term, to make us competitive with other states like Massachusetts." (Chair)
Representative Elmi and others pressed for data from the Department of Revenue Administration (DRA) and the Legislative Budget Assistant on how many refunds occur because leases extend beyond the current 185‑day threshold and the resulting revenue impact. Jennifer Ramsey of DRA said she could obtain historical refund counts and also warned about technical drafting issues (for example, wording about "occupancy of 1 person" that likely needs editing) and system implementation timing; she recommended adding applicability language so the department could implement changes in a controlled time frame.
Committee members also raised questions about potential unintended consequences, including whether the new statutory language could affect other legal definitions (for example motor vehicle registration or voting residency) and whether it would increase refunds for certain occupancies. The committee did not take final action and asked staff to gather DRA historical refund data and legal guidance before returning to the bill.
Status: Work session held; committee deferred action pending DRA and LBA data and drafting edits.
