Voters in Manchester have narrowly rejected a one percent tax on local rooms.
But residents approved the same tax on meals and alcohol.
After hearing from restaurant and inn owners who fear the taxes will hurt tourism, residents voted 58 to 57 against the rooms tax at a special town meeting.
Earlier in the evening, they approved the meals tax 61-53.
The one percent tax on meals and alcohol is expected to raise about $200,000 according to a recent study.
Advocates say the additional revenue will help to cover the estimated $350,000 to $420,000 loss in revenue from the town’s local sales tax.