SB 585-FN - AS INTRODUCED
2024 SESSION
24-2867
05/06
SENATE BILL 585-FN
AN ACT relative to a property lien resulting from unpaid meals and rooms taxes.
SPONSORS: Sen. Lang, Dist 2; Sen. Gendreau, Dist 1; Sen. Pearl, Dist 17; Rep. Moffett, Merr. 4; Rep. Osborne, Rock. 2
COMMITTEE: Ways and Means
-----------------------------------------------------------------
ANALYSIS
This bill provides that, for purposes of a property tax lien filed against an operator for unpaid meals and rooms taxes, the operator of a limited liability company includes any person in a managerial capacity of the limited liability company.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2867
05/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to a property lien resulting from unpaid meals and rooms taxes.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Meals and Rooms Tax; Taxes as Property Lien. Amend RSA 78-A:21 to read as follows:
78-A:21 Taxes as Property Lien. If any operator required to collect and transmit a tax under this chapter neglects or refuses to pay the tax after demand, the amount, together with all penalties and interest provided for in this chapter and together with any costs that may accrue in addition to the tax becomes a lien in favor of the state upon all property and rights to property whether real or personal belonging to the operator. The lien arises at the time demand is made by the commissioner and continues until the liability for the sum, with interest and costs, is satisfied or becomes unenforceable. Certificates of release of such lien shall be given by the commissioner on the satisfaction of the lien. For the purposes of this section, operator in the case of corporations includes the president, treasurer, or any other person in a managerial capacity of said corporation. Operator, in the case of a limited liability company, includes [members and] any [other] person in a managerial capacity of the limited liability company. No lien against real property under this section shall be effective until it is recorded at the registry of deeds for the county in which the real property lies.
2 Effective Date. This act shall take effect January 1, 2025.
24-2867
11/30/23
SB 585-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to a property lien resulting from unpaid meals and rooms taxes.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
|
| |||||
Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | Indeterminable | Indeterminable | Indeterminable | ||
Revenue Fund(s) | General Fund and Education Trust Fund
| |||||
Expenditures | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None
| |||||
Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None
| |||||
• Does this bill provide sufficient funding to cover estimated expenditures? [X] See Below • Does this bill authorize new positions to implement this bill? [X] N/A | ||||||
METHODOLOGY:
This bill provides for purposes of a property tax lien filed against a Meals and Rooms (M&R) operator that fails or refuses to remit the M&R tax upon demand by the Department by amending the definition of an operator of a limited liability company by limiting it to only persons in a managerial capacity of the limited liability company. Although this bill does not affect the taxability of M&R activities, this restriction could potentially have a negative effect on the collectability of delinquent M&R taxes and ultimately decrease revenues. The Department is unable to determine the fiscal impact for this bill as the Department is unable to determine the outcome of property liens placed on M&R operators.
The Department would need to update all necessary tax return forms and electronic management systems to reflect the changes contained in this bill; however, it is not anticipated this will result in any additional administrative costs that could not be absorbed in the Department's operating budget.
AGENCIES CONTACTED:
Department of Revenue Administration