HB1207: exempting wine sample fees from the meals and rooms tax.

HB 1207-FN - AS INTRODUCED

2016 SESSION

16-2082

03/01

HOUSE BILL 1207-FN

AN ACT exempting wine sample fees from the meals and rooms tax.

SPONSORS: Rep. Potucek, Rock. 6; Rep. Hannon, Straf. 25; Rep. Abramson, Rock. 20; Rep. Biggie, Hills. 23; Rep. Jones, Straf. 24; Rep. Cordelli, Carr. 4; Rep. Burt, Hills. 39; Sen. Carson, Dist 14; Sen. Reagan, Dist 17

COMMITTEE: Commerce and Consumer Affairs

ANALYSIS

This bill exempts samples of wine provided to visitors to the premises of a wine manufacturer from the tax on meals and rooms.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

16-2082

03/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Sixteen

AN ACT exempting wine sample fees from the meals and rooms tax.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Subparagraph; Taxable Meals; Exemptions. Amend RSA 78-A:3, X(c) by inserting after subparagraph (10) the following new subparagraph:

(11) Samples of wine provided to visitors to the premises of a wine manufacturer licensed under RSA 178:8.

2 Wine Manufacturer; Samples. Amend RSA 178:8, III to read as follows:

III. Each wine manufacturer shall have the right to sell at retail or wholesale at its winery for off-premises consumption any of its wines. Visitors of legal drinking age at said premises may be provided with samples of wine manufactured on the premises for tasting. Samples may be provided either free or for a fee and shall be limited to one 2-ounce sample per label per person. Samples provided by wine manufacturers shall not be subject to the tax on meals and rooms under RSA 78-A. Pursuant to rules adopted by the commission, a wine manufacturer may transport its products to a farmers' market or a wine festival licensed under RSA 178:31, and may sell such products at retail in the original container.

3 Effective Date. This act shall take effect July 1, 2016.

LBAO 16-2082

10/27/15

1207-FN - FISCAL NOTE

AN ACT exempting wine sample fees from the meals and rooms tax.

FISCAL IMPACT:

The Department of Revenue Administration states this bill, as introduced, will decrease state revenue and may decrease local revenue by an indeterminable amount in FY 2017 and each year thereafter. There is no fiscal impact on county revenue or state, county and local expenditures.

METHODOLOGY:

The Department of Revenue Administration states this bill exempts wine sample fees from the meals and rooms tax. The Department states this will result in an indeterminable decrease in state revenue and indeterminable impact on local revenue. The Department does not have information on how many samples have been sold in the past or their valuation or any information on future sales to determine the impact of this bill on revenue. RSA 78-A:26, I provides for a distribution of meals and rooms revenue to cities and towns as a percentage of the total revenues collected. The Department does not expect the FY 2016 distribution amount to be impacted by the proposed legislation as it is anticipated the amount of revenue collected will exceed the capped amount. However, in years where there is no cap on the amount to be distributed, the decrease in total revenue anticipated by this bill may impact the distribution to cities and towns since the formula is based on a percentage of the total revenue collected.