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Portsmouth mayor upset NH legislature won't back 'pillow tax' for hotel, room rentals

The Davenport Inn on Court Street in Portsmouth is one of many hotels in this popular tourist city in New Hampshire.
The Davenport Inn on Court Street in Portsmouth is one of many hotels in this popular tourist city in New Hampshire.

A New Hampshire state Senate committee held a hearing last week on the bill to enable towns and cities to adopt a "municipal occupancy fee" for room rentals. The committee voted 3-2 to recommend the bill be rejected.

This story was originally produced by the Portsmouth Herald. NHPR is republishing it in partnership with the Granite State News Collaborative.

Portsmouth Mayor Deaglan McEachern remains frustrated by a lack of support in the New Hampshire Legislature for creating a so-called “pillow tax” and what he sees as the unfair distribution of monies from the state meals and rooms tax.

“It’s frustrating we can’t charge people from Massachusetts $2 a night to stay here at one of our Portsmouth hotels,” McEachern said in an interview.

McEachern’s comments came after he recently testified in front of the state Senate Ways and Means Committee to try to win support for Senate Bill 634, which would give communities a “local option” to impose a pillow tax of no more than $2 per night, per room, to stay at a local hotel.

The mayor believes a pillow tax in Portsmouth — a tourist destination that draws people to historic venues, restaurants, downtown clubs and hotels — could bring in about $1 million in additional revenue per year. There are more than 2,000 hotel rooms in Portsmouth, city officials said.

Continue reading this story at Seacoastonline.

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