A bill filed by five House Democrats could affect one of New Hampshire’s primary tourist attractions: The skiing industry. The current 9% tourist sales tax already applies to all prepared food, hotels, and rental cars. In an effort to increase sales tax revenue for the State and help fund education for underprivileged children and prison inmates, Democrats are hoping to extend that 9% tax to include skiers and snowboarders visiting New Hampshire’s ski resorts.
House Bill 1652 requires all ski resorts to obtain a license, display the license, and begin to collect a 9% tax on ski lift tickets, which must be given to the state government. Understanding how skiers would react to this new 9% tax, the sponsors of the bill mention that the revenue from the new tax would fund ‘education’ for ‘the poorest children in New Hampshire.’
If this Democrat bill passes the Democrat-controlled House and Senate and is signed into law by Governor Sununu, we can all expect an immediate 9% increase in the cost of our lift tickets.
People alter their behavior when incentives or disincentives change. A 9% increase is a significant change.
New Hampshire ski resorts earn millions of dollars from tourists who ski and snowboard in our state. Once out-of-state residents learn that their lift tickets will be at least 9% more expensive than they were last year, some could decide to not return, thus diminishing the important revenue that ski resorts make. This could force New Hampshire’s fifteen (15) ski resorts to increase their prices in order to make up for lost revenue, a considerable unintended consequence.
If you have an opinion on this bill, make sure to contact the sponsors, the House Ways & Means Committee, and your own legislators.