By GARRY RAYNO, InDepthNH.org

CONCORD — Senate budget writers may be optimistic about business taxes for the next biennium, but May revenues show a continued downward trend.

However, despite business taxes’ poor showing, state revenues finished the next-to-last month in the 2025 fiscal year $5.4 million ahead of estimates at $141.1 million, which was below the prior year by $600,000.

The state revenue picture was bailed out by the two usual sources recently, interest earned on state financial holdings of federal pandemic funds not yet spent and past surpluses, and by lottery commission returns which are earmarked for the Education Trust Fund. Many other state levies performed below expectations for May.

For the first 11 months of the fiscal year, state revenues totaled $2.8 billion, which is $36.2 million below the revenue plan and $195.4 million less than the prior year.

For May, business taxes totaled $32.3 million, which is $3.1 million below estimates, but $3.7 million more than the previous year.

According to the Department of Revenue Administration, “the decrease in Business Tax revenue from the prior year was due to a decrease in corporation estimates and tax notice payments.”

For the year to date, business taxes totaled $922.9 million, which is $161.4 million below estimates and $130.8 million below fiscal 2024.

The rooms and meals tax was slightly ahead of estimates returning $23.9 million, which is $700,000 more than a year ago.

For the year to date, rooms and meals have returned $308.5 million, which is $10.4 million above estimates and $8.3 million more than a year ago.

According to the DRA taxable meals were up 4.4 percent over a year ago, but hotel activity was down 11.3 percent.

The Lottery Commission produced $16.4 million in May, which is $3.2 million more than estimates, but $2 million less than a year ago.

The DRA said the returns were buoyed by strong sales in sports betting and historic horse racing.

For the year to date, the commission has produced $172. 4 million, which is $36.4 million more than estimates and $2.8 million more than a year ago.

The Other category returned $15.7 million for May, which is $11.8 million more than estimates and $500,000 more than a year ago.

The DRA said much of the increase is from increases in interest income.

For the year to date, Other has returned $147.4 million, which is $36.4 million more than estimates, but $5.6 million less than a year ago.

The state’s traditional “sin taxes,” tobacco, liquor and beer were all below estimates for May, the tobacco returning $15.4 million, which is $4.9 million below estimates, and liquor returning $6 million, which is $4.9 million less than estimates.

The state’s taxes that reflect business activities such as the communications, interest and dividends, and securities returns were a mixed bag, as economic activity slowed in the first quarter of the calendar year and beyond. 

The real estate transfer tax produced $14.6 million for May, which is $1.8 million less than estimates, but $1.3 million more than a year ago. For the year to date, the levy produced $183.8 million, which is $6 million less than estimates, but $18.1 million more than a year ago.

According to the DRA, transactions were down .4 percent, but the values were 12.8 percent above a year ago.

The highway fund, which is mostly from vehicle registrations and the gas tax, produced $22 million in May, which is $1 million more than estimates, but $1 million less than a year ago.

For the year to date, the fund took in $246 million, which is $8 million more than estimates and $6.4 million more than a year ago.

The Fish and Game Fund took in $2.4 million in May, which is $800,000 above estimates, and $600,000 more than a year ago.

For the year to date, the fund has produced $13 million, which is $1.4 million more than estimates, and the same as a year ago.

House and Senate budget writers are negotiating today and into next week to try to produce a compromise budget the House and Senate can vote on June 26, four days before the end of the 2025 fiscal year.

Garry Rayno may be reached at garry.rayno@yahoo.com.