reducing the amount of meals and rooms taxes operators can retain.

HB 1063 reduces the percentage of meals and rooms tax that businesses (like restaurants and hotels) can retain from 3% to 1.5% for returns filed electronically and received on time by the Department of Revenue Administration. This change directly affects operators who collect these taxes, shifting revenue from their retained portion to state funds. The bill amends RSA 78-A:7, III and takes effect July 1, 2026. Based on FY 2025 data, this would increase state revenue by approximately $6.4 million annually, primarily benefiting the General Fund.