NH reduces the lodging tax to below the 9% rate charged by ME, VT (loans, how much)

[Nonesuch]

NH state meals and rooms tax dropped from 9% to 8.5%.

Originally Posted by NHBR

The tax reduction was set in motion by a two-year budget signed by Gov. Chris Sununu in June that reduced taxes across a range of areas, including the business profits and enterprise taxes and the interest and dividends tax, which is set to be reduced to zero over the course of five years.

Originally Posted by CitizensCount

The tax is collected by hotels, restaurants, caterers, and other businesses. They send the money to the state. A bit of that money goes toward school building loans and tourism promotion. State law requires 40% to go back to towns based on their population, but for many years the state shortchanged that revenue sharing. The rest goes to the state's general fund.
...
The 2022-2023 budget set revenue sharing at 30% going forward, which increases the share of funds returning to municipalities by $50 million in 2022

We compete with Maine and Vermont for tourists, this improves our reputation as a low-tax state.

[Wells5]

Nobody has answered a question that I posed recently on how this tax money is to be replaced. Will it be through the political gimmick of "dynamic scoring," which is the claim that the tax reductions will bring such a period of growth that revenues in general will increase to make up for the shortfall?

[jdhpa]

Tax money doesn't need to be replaced. Revenue needs to exceed expenses and increases in liabilities. Having excess revenue encourages people to look for something good to spend it on. No matter how much is spent, there's always something more that would be good or nice to have at taxpayer expense.

[Nonesuch]

Originally Posted by Wells5

Nobody has answered a question that I posed recently on how this tax money is to be replaced. Will it be through the political gimmick of "dynamic scoring," which is the claim that the tax reductions will bring such a period of growth that revenues in general will increase to make up for the shortfall?

The appropriate answer is that the state should make up the "shortfall" by spending less of our money. In this case, by reducing spending by $150 million.

[Driver 47]

Originally Posted by Wells5

Nobody has answered a question that I posed recently on how this tax money is to be replaced. Will it be through the political gimmick of "dynamic scoring," which is the claim that the tax reductions will bring such a period of growth that revenues in general will increase to make up for the shortfall?

Reducing taxes attracts business, increases tourism and helps keep productive citizens and their money right here. Any revenu "lost" will soon be regained in the local economy. Better for everyone, including the state.

[abnfdc]

https://www.governor.nh.gov/news-and...ty%20taxpayers


Supposedly even with the cut, the distribution is being adjusted so towns see more from the tax.


"on top of this reduction cities and towns will see an increase in the share they receive back from the revenue stream with up to $15 million in additional money for municipalities"

[ChadChadderson]

That's the New Hampshire spirit I love.

Less is more.

Please don't ever change.

[drums25]

Of course it changed on Friday. Figures, I booked my hotel on Thursday, lol.
.5% Difference, no biggie.

[City Guy997S]

Originally Posted by Nonesuch

NH state meals and rooms tax dropped from 9% to 8.5%.





We compete with Maine and Vermont for tourists, this improves our reputation as a low-tax state.

1/2% = on a $100 meal you saved 50 cents.

On a $500 hotel stay you saved $2.50

I can imagine the traffic jams NH will have now with all these tourists coming to save 1/2%

[robr2]

Originally Posted by City Guy997S

1/2% = on a $100 meal you saved 50 cents.

On a $500 hotel stay you saved $2.50

I can imagine the traffic jams NH will have now with all these tourists coming to save 1/2%

And it's still 3.3 percentage points above the lodging tax of 5.7% in MA>