Hotel Tax and Occupancy Tax Laws in New Hampshire

1. What is the current rate of hotel tax in New Hampshire?

The current rate of hotel tax in New Hampshire is 9% as of 2021. This tax is applied to the total cost of a hotel stay, including room charges and any additional fees. The revenue generated from hotel taxes in New Hampshire is typically used to fund local tourism initiatives, infrastructure improvements, and other municipal projects. It is important for hotels and lodging establishments in the state to accurately collect and remit these taxes to the appropriate authorities in compliance with state and local laws and regulations. Non-compliance with hotel tax laws can result in penalties, fines, and potential legal action from tax authorities. Therefore, it is crucial for businesses operating in the hospitality sector to stay informed about the current hotel tax rates and regulations in New Hampshire to avoid any issues with tax compliance.

2. Are there any exemptions to the hotel tax in New Hampshire?

In New Hampshire, there are specific exemptions to the hotel tax. One exemption is for certain types of lodging facilities that are not considered traditional hotels or motels, such as campgrounds or rental properties that are not rented out for more than 7 consecutive days. Additionally, lodging provided to employees by their employers for work-related purposes may also be exempt from the hotel tax. It’s important for lodging providers in New Hampshire to be aware of these exemptions and ensure they are in compliance with the state’s hotel tax laws to avoid any potential penalties or fines.

3. How is the hotel tax collected and remitted to the state in New Hampshire?

In New Hampshire, the hotel tax, also known as the Meals and Rentals Tax, is collected and remitted to the state by lodging facility operators. Here’s how the process typically works:

1. Collection: When a guest stays at a lodging facility in New Hampshire, such as a hotel, motel, bed and breakfast, or vacation rental, the operator is required to collect a 9% tax on the total amount charged for the room rental. This tax applies to the room rate only and does not include charges for meals or other services.

2. Record Keeping: Operators are responsible for keeping detailed records of all room rentals, including the total amount charged and the amount of tax collected. These records may be subject to audit by the state tax authorities.

3. Remittance: Lodging operators are required to remit the hotel tax to the state on a regular basis, typically on a monthly or quarterly basis. The tax can be remitted electronically through the state’s online portal or by submitting a paper return along with the appropriate payment.

4. Reporting: Along with remitting the tax, operators must also file a report with the state detailing the total amount of room rentals, the tax collected, and any other required information. This report helps the state track tax revenues and ensure compliance with the law.

Overall, the process of collecting and remitting the hotel tax in New Hampshire is straightforward but requires operators to maintain accurate records and stay compliant with state regulations to avoid penalties or fines.

4. Are there any specific requirements for registering for hotel tax in New Hampshire?

Yes, in New Hampshire, there are specific requirements for registering for hotel tax. These requirements include:

1. Application: To register for hotel tax in New Hampshire, you need to complete an application form provided by the Department of Revenue Administration (DRA).

2. Registration Fee: There may be a registration fee associated with applying for a hotel tax registration in New Hampshire. This fee varies depending on the local jurisdiction and the type of accommodation establishment.

3. Account Set-Up: Once your application is approved, you will be issued a tax identification number by the DRA. This number is used to report and remit the hotel tax collected.

4. Reporting Obligations: Hotel operators in New Hampshire are required to submit periodic hotel tax returns and remit the tax collected to the state revenue authorities. These returns typically need to be filed monthly or quarterly, depending on the volume of business.

By ensuring compliance with these requirements, hotel operators can avoid penalties and legal issues related to non-payment of hotel tax in New Hampshire.

5. What is the definition of “transient occupancy” for purposes of the occupancy tax in New Hampshire?

In New Hampshire, the term “transient occupancy” refers to the temporary use or possession, or the right to the use or possession, of any room in a hotel, motel, inn, or similar establishment for lodging purposes. This definition typically encompasses stays that are shorter in duration, often less than 185 consecutive days or as defined by the local jurisdiction. Within the context of occupancy tax laws, transient occupancy is subject to taxation in New Hampshire. The state imposes a Rooms and Meals Tax on accommodations rented out in the state, including hotels and motels, which applies to charges for room rentals to transient guests. This tax is collected by lodging establishments from guests and remitted to the state on a regular basis. It is essential for hotels and other lodging providers in New Hampshire to comply with these occupancy tax regulations to avoid potential penalties or fines.

6. Are vacation rentals subject to the occupancy tax in New Hampshire?

Yes, vacation rentals are subject to the occupancy tax in New Hampshire. The state imposes a Rooms and Meals Tax, which applies to rentals of rooms, cottages, or vacation homes for a period of fewer than 185 consecutive days. This tax is levied on the occupant at the rate of 9% of the total rental charge. Vacation rental hosts are required to collect this tax from guests and remit it to the state on a regular basis. Failure to comply with this tax requirement can result in penalties and fines for the property owner. It is essential for vacation rental hosts in New Hampshire to understand and adhere to the state’s occupancy tax laws to avoid any potential legal consequences.

7. Are there any penalties for failing to comply with hotel tax laws in New Hampshire?

Yes, there are penalties for failing to comply with hotel tax laws in New Hampshire. Hotel operators who fail to collect and remit the required occupancy tax can face various penalties, including but not limited to:

1. Monetary fines: The New Hampshire Department of Revenue Administration may impose monetary fines on hotel operators who fail to comply with hotel tax laws. The amount of the fine can vary depending on the severity of the violation.

2. Interest charges: Hotel operators who do not remit the required occupancy tax on time may be subject to interest charges on the overdue amount. These interest charges can accumulate over time, increasing the total amount owed by the operator.

3. Legal action: In cases of severe or repeated non-compliance, the Department of Revenue Administration may take legal action against the hotel operator. This can involve enforcement actions such as liens on the property or even criminal charges in extreme cases.

It is important for hotel operators in New Hampshire to ensure they are fully compliant with hotel tax laws to avoid these penalties and potential legal consequences. It is advisable to consult with a tax professional or legal advisor to understand the specific requirements and obligations under New Hampshire’s hotel tax laws.

8. Can hotels pass on the cost of the hotel tax to guests in New Hampshire?

Yes, hotels in New Hampshire can pass on the cost of the hotel tax to guests. The hotel tax, also known as the Rooms and Meals tax in New Hampshire, is a mandatory tax imposed on lodging services provided by hotels and other accommodations. Hotels typically include this tax as a separate line item on the guest’s bill, making it transparent to the guest. By passing on the cost of the hotel tax to the guests, hotels are able to ensure compliance with the state’s tax laws and regulations while accurately reflecting the total cost of the stay. Guests should be informed about the presence of this tax at the time of booking or check-in to avoid any surprises.

9. Are there any local occupancy taxes in addition to the state occupancy tax in New Hampshire?

Yes, in addition to the state occupancy tax in New Hampshire, there are certain local occupancy taxes that may apply. These local occupancy taxes are imposed by individual cities or towns within the state and are typically known as local rooms and meals taxes. The local rooms and meals tax rates can vary from one municipality to another and are in addition to the state’s rooms and meals tax rate, which is currently set at 9%. Local occupancy taxes are generally collected by lodging establishments, such as hotels and motels, on behalf of the local government and are used to support local services and tourism-related initiatives. It is important for hotels and other lodging establishments to be aware of and comply with both state and local occupancy tax laws in order to avoid any penalties or fines.

10. Are there any special provisions for extended stays or long-term rentals in New Hampshire’s occupancy tax laws?

In New Hampshire, there are special provisions for extended stays or long-term rentals regarding the occupancy tax laws.

1. Extended stays of 185 consecutive days or more in a lodging establishment are exempt from the state’s Rooms and Meals Tax. This exemption applies to individuals who are occupying a room or rental unit for a continuous period of 185 days or more, making it essentially a long-term rental rather than a short-term lodging arrangement subject to the tax.

2. For stays less than 185 days but longer than 30 consecutive days, there may be potential exemptions or reduced rates available for lodging establishments, depending on the specific circumstances and arrangements made between the guest and the establishment. It is advisable for both guests and lodging operators to consult with tax professionals or legal experts to understand the implications and requirements related to long-term stays and occupancy tax laws in New Hampshire.

Overall, while New Hampshire’s occupancy tax laws do provide some provisions for extended stays or long-term rentals, it is essential for both guests and lodging operators to be aware of the specific regulations and exemptions applicable in such situations to ensure compliance with the law.

11. How does New Hampshire’s hotel tax compare to surrounding states?

In New Hampshire, the hotel tax, also known as the rooms and meals tax, is currently set at 9%. This tax is imposed on the rent paid for hotel rooms, motel rooms, and vacation rentals. When comparing New Hampshire’s hotel tax to surrounding states, there are some notable differences:

1. Maine has a lodging tax rate of 9%, similar to New Hampshire.
2. Vermont has a rooms and meals tax rate of 9%, aligning with both New Hampshire and Maine.
3. Massachusetts also has a hotel tax rate of 9.45%.
4. Connecticut has a slightly lower hotel tax rate of 15%.
5. Rhode Island’s hotel tax rate stands at 13%.
6. Finally, New York has a hotel tax rate that can vary by locality but typically ranges from 3% to 6%.

Overall, when comparing New Hampshire’s hotel tax to its neighboring states, it falls within a similar range with rates typically around 9%. Keep in mind that these rates can vary by locality within each state, so it is essential to check the specific tax rates for the area you are traveling to.

12. Are online travel agencies (OTAs) responsible for collecting and remitting hotel tax in New Hampshire?

In New Hampshire, online travel agencies (OTAs) are generally not responsible for collecting and remitting hotel tax. The hotel tax laws in New Hampshire typically require the hotels themselves to collect and remit the applicable taxes directly to the state. However, some online travel agencies may opt to enter into agreements with the hotels to collect the taxes on their behalf. It is important for hotels and OTAs operating in New Hampshire to understand their tax obligations and to ensure compliance with the state’s laws and regulations to avoid any potential penalties or legal issues.

1. The responsibility for collecting and remitting hotel tax in New Hampshire falls primarily on the hotels themselves.
2. OTAs may voluntarily choose to collect and remit hotel tax on behalf of the hotels through agreements.
3. Compliance with New Hampshire’s hotel tax laws is essential for both hotels and OTAs to avoid any legal consequences.

13. Are there any specific record-keeping requirements for hotels subject to the occupancy tax in New Hampshire?

Yes, hotels subject to the occupancy tax in New Hampshire are required to maintain specific records to comply with the state’s regulations. The New Hampshire Department of Revenue Administration (NHDRA) mandates that hotels keep detailed records of all room rentals and sales transactions. These records should include information such as the dates of rental, the room rates charged, the total amount of taxes collected, and any tax exemptions applied. Additionally, hotels must retain records of any tax returns filed and supporting documentation for a minimum of four years. Failure to maintain accurate records can result in penalties or fines from the NHDRA. It is essential for hotels to ensure they are in compliance with these record-keeping requirements to avoid any issues or liabilities related to the occupancy tax in New Hampshire.

14. Are there any recent changes or updates to hotel tax laws in New Hampshire?

Yes, there have been recent changes to hotel tax laws in New Hampshire. As of October 2019, Senate Bill 242 was signed into law, changing the structure of the rooms and meals tax. This bill increased the state meals and rooms tax rate from 9% to 9.5%. Additionally, it expanded the definition of operator to include online platforms, such as Airbnb and VRBO, requiring them to collect and remit the tax on behalf of hosts on their platforms. These changes aim to ensure that all short-term rental properties are subject to the same tax laws as traditional hotels and lodging establishments. It is important for individuals and businesses operating in the hospitality industry in New Hampshire to stay updated on these changes to remain compliant with the law and avoid potential penalties.

15. Are there any specific provisions for bed and breakfast establishments in New Hampshire’s hotel tax laws?

Yes, there are specific provisions for bed and breakfast establishments in New Hampshire’s hotel tax laws. In New Hampshire, bed and breakfast establishments are generally classified as “rooming houses” which are subject to the Rooms and Meals Tax. The Rooms and Meals Tax is a state-imposed tax on the rental of rooms in hotels, motels, bed and breakfasts, and other lodging facilities. This tax applies to the rental charge for rooms, cottages, camps, or similar accommodation furnished to transients for a continuous period of less than 185 days. Bed and breakfast establishments are required to collect and remit the Rooms and Meals Tax on the room rental charges they collect from their guests. It is important for bed and breakfast owners in New Hampshire to familiarize themselves with the specific provisions of the state’s hotel tax laws to ensure compliance and avoid any potential penalties or fines.

16. How is the occupancy tax enforced in New Hampshire?

In New Hampshire, the occupancy tax is enforced by the state’s Department of Revenue Administration (DRA). The tax is levied on lodging facilities, including hotels, motels, inns, bed and breakfasts, and other short-term rentals. The current occupancy tax rate in New Hampshire is 9%.

1. Registration: Lodging operators are required to register with the DRA and obtain a license to collect and remit the occupancy tax.
2. Collection: Lodging operators must collect the 9% tax from guests at the time of booking or check-in.
3. Reporting: Operators are responsible for reporting and remitting the tax to the DRA on a regular basis, typically monthly or quarterly.
4. Compliance Checks: The DRA conducts compliance checks and audits to ensure that lodging operators are properly collecting and remitting the tax.
5. Penalties: Failure to comply with the occupancy tax laws in New Hampshire can result in penalties, interest, and potential legal action by the DRA.

Overall, the enforcement of the occupancy tax in New Hampshire is handled by the DRA through a combination of registration, collection, reporting, compliance checks, and penalties to ensure that lodging operators are in compliance with the state’s tax laws.

17. Can hotels offer tax-exempt stays to certain guests in New Hampshire?

1. In New Hampshire, hotels can offer tax-exempt stays to certain guests under specific circumstances. Generally, hotels in New Hampshire are required to collect and remit both the Meals and Rooms (Rentals) Tax. However, there are exemptions available for certain types of guests or situations.

2. For example, under New Hampshire law, hotels can provide tax-exempt stays to individuals with valid tax-exempt certificates issued by the State of New Hampshire. These certificates are typically provided to government employees, certain organizations, or individuals engaged in specific activities that are exempt from taxation.

3. Additionally, hotels may also offer tax-exempt stays to guests who are considered to be in certain categories, such as certain military personnel on official orders or individuals receiving medical treatment in the state. It’s important for hotels to verify the eligibility of guests for tax-exempt stays and keep appropriate documentation on file to support these exemptions.

4. Hotels should consult the New Hampshire Department of Revenue Administration or a tax professional for specific guidance on offering tax-exempt stays and complying with all relevant laws and regulations. Failure to properly apply tax exemptions or collect the required taxes can result in penalties and other legal consequences.

18. Are there any mechanisms for disputing hotel tax assessments in New Hampshire?

In New Hampshire, there are mechanisms available for disputing hotel tax assessments. When a hotel receives a tax assessment that they believe to be incorrect or unfair, they can appeal the assessment through the New Hampshire Department of Revenue Administration (DRA). The process typically involves submitting a written protest detailing the reasons for disputing the assessment and providing supporting documentation. The DRA will review the protest and may schedule a meeting or hearing to further discuss the matter. Additionally, if the hotel is not satisfied with the outcome of the DRA’s review, they may have the option to pursue further appeals through the New Hampshire courts. It is important for hotels to follow the specific procedures and deadlines set forth by the DRA when disputing hotel tax assessments in order to protect their rights and seek a resolution to the matter.

19. How are short-term rentals like Airbnb properties treated under New Hampshire’s hotel and occupancy tax laws?

1. In New Hampshire, short-term rentals like Airbnb properties are subject to the state’s Rooms and Meals Tax, which is essentially the hotel and occupancy tax law.
2. Airbnb hosts are required to collect and remit this tax on behalf of the state.
3. The current tax rate for Rooms and Meals Tax in New Hampshire is 9%, which is applicable to the rental amount charged for the short-term accommodation.
4. Hosts are responsible for registering with the state and obtaining a Rooms and Meals Tax license to ensure compliance with the law.
5. Failure to collect and remit the tax can result in penalties and fines for the host.
6. Airbnb also has systems in place to assist hosts with collecting and remitting the tax, making the process more manageable.
7. Overall, short-term rentals like Airbnb properties in New Hampshire are treated similarly to traditional hotels in terms of tax obligations to the state.

20. Are there any resources or assistance available for hotels to better understand and comply with New Hampshire’s hotel tax laws?

Yes, there are resources and assistance available for hotels to better understand and comply with New Hampshire’s hotel tax laws. Here are some options:

1. Department of Revenue Administration (DRA): The DRA is the government agency responsible for administering tax laws in New Hampshire. They provide information, guidance, and resources to help hotels understand and comply with the state’s hotel tax laws.

2. Online resources: The DRA website offers a wealth of information on New Hampshire’s hotel tax laws, including guides, FAQs, forms, and instructions. Hotels can access these resources to learn more about their tax obligations and how to comply with the law.

3. Training and workshops: The DRA occasionally offers training sessions and workshops for businesses, including hotels, to help them understand tax laws and requirements. Hotels can attend these sessions to get a better grasp of their obligations and how to stay in compliance.

4. Tax professionals: Hotels can also consider hiring a tax professional or consultant who is well-versed in New Hampshire’s tax laws. These professionals can provide personalized guidance and advice to ensure that hotels are meeting their tax obligations and avoiding any potential penalties.

By utilizing these resources and assistance options, hotels in New Hampshire can enhance their understanding of the state’s hotel tax laws and ensure compliance to avoid any legal issues.