By GARRY RAYNO, InDepthNH.org
CONCORD — The long run of better than anticipated business taxes that has fueled the state’s budget surpluses over the past few years continues, but at a slower pace.
For March business taxes are almost flat or about what they were a year ago, but continue to be much higher than what budget writers underestimated about two years ago.
The overall picture for March, a large month due to business tax collections, shows a $55.7 million revenue surplus.
For the month, revenues were $654 million, and totaled $2.2 billion for the first three-quarters of the fiscal year. That figure is $57.5 million less than a year ago, but includes a $100 million reduction in the Statewide Education Property Tax, and $323.7 million more than estimates.
The combined business profits and enterprise taxes produced $163 million for March, which is $34.5 million more than estimates and $2.7 million more than a year ago.
The Department of Revenue Administration says the March figure is due to “an increase in tax notice payments due to audit activity, and estimated tax payments due to timing and larger than average payments. These increases are offset by an increase of refunds in part due to an extra week in refund payment cycle.”
For the year to date, business taxes have produced $767.7 million, which is $22.5 million more than a year ago, and $178 million above estimates.
The state’s second largest revenue source, the rooms and meals tax, continues to rebound from the pandemic producing $22.5 million for March, which is $5.1 million over estimates and $1.1 million more than a year ago.
For the year to date, the levy has produced $246.7 million, which is $11.5 million more than a year ago, and $62.1 million above estimates.
The DRA said the tax for March represents a 8.3 percent increase in meals from the same month a year ago, and 1.2 percent increase in hotel sales.
The Insurance Tax on premiums returned $126.1 million in March, which is $4.6 million over estimates but $5.6 million less than last year.
For the year to date, the tax has produced $151.8 million, which is $11.1 million below last year, but $9.5 million more than estimates.
The interest and dividends tax produced $6.4 million for March, $600,000 more than estimates and $400,000 more than a year ago. For the year to date, the levy has produced $58.3 million, which is $8.4 million less than a year ago, and $500,000 more than estimates.
Buoyed by strong sales and large jackpots, the Lottery produced $16.3 million for March, $5.8 million above estimates and $5.1 million more than a year ago.
For the year to date, the Lottery has produced $132.1 million, which is $33.5 million more than a year ago, and $40.4 million more than estimates.
The “other” category of small taxes and fees produced $10.6 million in March, which is $4.9 million more than estimates and $7.5 million more than a year ago.
Securities revenues produced $4.5 million, which is well above estimates but is due to mutual funds reporting a month early according to the Secretary of State’s Office
Below estimates for the month were the tobacco, communications, real estate transfer and utility property taxes.
The Liquor Commission was right on target producing $10.5 million in March, as was court fines and fees at $1.1 million and the beer tax at $900,000.
The Highway Fund comprised largely of the gas tax and auto registrations, produced $22 million in March, which is $200,000 less than estimates, but the same as produced a year ago.
For the year to date, the fund has taken in $188.7 million, which is $900,000 less than estimates and $3 million less than a year ago.
The Fish and Game Fund produced $500,000 in March, which is $100,000 over what was produced a year ago and on target for this year.
For the year to date, the fund has taken in $9.9 million, which is $900,000 above estimates and $100,000 below a year ago.
April is another large collection month for state revenues due largely to business taxes.
Garry Rayno may be reached at garry.rayno@yahoo.com.