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Meals and room tax to decrease to 8.5% on Oct. 1

The Department of Revenue is reminding taxpayers that the meals and room (rentals) tax rate will decrease from 9% to 8.5% as of Oct. 1.

The meals and rooms tax applies to restaurants, motor vehicle rentals and hotels or any other facility with sleeping accommodations. Beer, wine and liquor served at a restaurant is also subject to this tax, whether or not food is served, according to a news release.

Businesses will need to update their systems to reflect the new 8.5% tax rate. Materials such as menus will need to reflect the new rate. Staff members should be alerted of the change to avoid confusion, according to the news release.

“It is important for businesses of all sizes to be reminded of the change and to implement the new rate on Oct. 1. Doing so will help ensure transparency with customers who will be expecting this lower rate and ensure compliance with state law,” said Lindsey Stepp, commissioner, New Hampshire Department of Revenue Administration, in a statement.