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Short-term rentals on NH legislative agenda

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Next Wednesday, May 11 the New Hampshire House of Representatives will vote on a bill to study the effect of short-term rentals on municipalities.

The bill, SB 482, was originally written to allow municipalities to regulate short-term rental businesses, such as Airbnb, through licensing.  The Senate amended the bill to instead establish a legislative committee to study the issue over the summer.

"The recent expansion of Airbnb and bed and breakfast businesses has raised concerns about zoning restrictions, safety, and taxation, among other issues. The goal is to take an in depth look at this issue and return to the legislature with recommendations by November 2016," said Rep. Marjorie Porter.

Some legislators are wary of the results of a study, however.

"Although this bill merely creates a study committee, the minority feels this bill is a reaction to the burgeoning 'sharing' and 'gig' economy facilitated by new technology such as the Airbnb platform," said Rep. Keith Ammon.  "Why burden new sectors of economic activity with taxes and regulations before they have had a chance to mature?" 

The New Hampshire Senate is also scheduled to vote next week on a different bill related to short-term rentals.  That bill, HB 1590, requires any advertisement for a short-term rental to include the meals and rooms license number issued by the state for tax purposes.

Right now short-term rentals are required to register with the state and contribute to meals and rooms taxes, although many do not.  HB 1590 is intended to help the Department of Revenue Administration identify short-term rentals that are not paying taxes.

Opponents of HB 1590 argue that the issue of how to tax short-term rentals requires further consideration before the state passes a law intended to increase tax collection.

"We should never set up legislation that encourages fishing trips," testified Sen. Andy Sanborn.  

Do you have an opinion on how the state should regulate short-term rental businesses?  Let us know in the comments.

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