New Hampshire Meals and Rooms Tax Changes for Airbnb Hosts

By Team HRH | November 8, 2017

If you are a host who rents out your unused spaces in New Hampshire through the online community marketplace Airbnb, you are probably interested in some upcoming changes to the Meals & Rooms tax (also referred to as M&R Tax). New guidelines were recently issued by the New Hampshire Department of Revenue in Technical Information Release 2017-008. Effective on or after November 1, 2017, Airbnb will have a New Hampshire M&R Tax license. Airbnb will file monthly returns and remit the M&R Tax due to the New Hampshire Department of Revenue by the 15th of the following month on behalf of Airbnb hosts. The information below outlines the M&R tax requirements and highlights changes in the recently issued Technical Information Release:

 
What is M&R Tax?
The M&R Tax is a 9% tax assessed by the New Hampshire Department of Revenue upon patrons of hotels (or any other facility with sleeping accommodations) and restaurants, on rooms and meals costing $0.36 or more.

Who pays M&R Tax?
The tax is paid by the consumer. The operators of hotels (or any other facility with sleeping accommodations) and restaurants collect the taxes and remit them to the state on behalf of the consumer.

When is the tax due?
The tax is due on the 15th of the month following the end of the taxable period.

What is changing?
Effective November 1, 2017, Airbnb will have a New Hampshire M&R Tax license. Airbnb will file monthly returns and remit the full amount of the M&R Tax due to the New Hampshire Department of Revenue by the 15th of the following month on behalf of Airbnb hosts.

What is not changing?
Airbnb hosts should continue to keep the books and records relating to any booking transactions, whether through Airbnb or not, for three years.

What if you offer sleeping accommodations using a service other than Airbnb after November 1, 2017?
Hosts remain obligated to register and obtain a M&R Tax license by submitting a completed DRA Form CD-3, file monthly returns, and collect and remit taxes to the NH DRA.

What if you have not filed M&R tax returns for sleeping accommodations booked prior to November 1, 2017? 

Airbnb hosts remain obligated to remit M&R taxes to the NH DRA for sleeping accommodations booked prior to November 1, 2017. If you have not remitted M&R taxes for accommodations prior to November 1, 2017, the NH DRA offers a Voluntary Disclosure Program as an option to come into compliance.

Should Airbnb hosts consider surrendering their existing M&R License?
It depends on your situation. If you, as a host, do business only through Airbnb and have collected and remitted the last of any M&R tax due for sleeping accommodations booked before November 1, 2017, you may surrender your existing M&R Tax license.

The New Hampshire Department of Revenue website offers additional resources on these recent changes. In addition, we recommend that you contact a Howe, Riley and Howe professional if you have any questions.

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