By GARRY RAYNO, InDepthNH.org
CONCORD — Updated state revenue figures show the state took in $197.7 million less money than it did the 2024 fiscal year, and $42.4 million less than budget-writer estimates.
Figures released earlier this month showed the state was $201.7 million behind fiscal 2024 revenues and $26.2 million below estimates for the 2025 fiscal year.
The latest figures are unaudited — those figures will be released at the end of the year — but take into account accruals to credit cash received to the correct fiscal year.
The figures are a moving target until the audited figures are released in the state’s Comprehensive Annual Financial Report usually in December.
According to latest numbers, state revenue totaled $3.12 billion, compared to $3.32 billion the previous year and to estimates of $3.165 billion.
The latest figures are $16.1 million lower than those released earlier this month, according to the Department of Administrative Services officials due to a net increase due to accruals and a decrease to revenues.
Business taxes were significantly lower in fiscal 2025 than a year ago, taking in $1.1 billion, as opposed to $1.22 billion the prior year, a decrease of $115.3 million or 9.5 percent.
The state’s second largest levy, the rooms and meals tax was $11 million more than a year ago, collecting $339.1 million, compared to $328.1 million in fiscal 2024, or an increase of 3.4 percent.
Transfers from the Lottery Commission totaled $203.4 million in fiscal 2025 compared to $201 million, or a 2.4 percent increase.
The real estate transfer tax was $18.6 million more than a year ago, taking in $202.3 million compared to $183.7 million or an 18.6 percent increase.
The other category was slightly down over a year ago, taking in $183.8 million, compared to $184.6 million. Much of the revenue comes from interest income on surplus funds and federal COVID rescue and relief money allocated but not yet spent.
And the tobacco tax continued its slide downward from a year ago, receiving $183.2 million, compared to $189.9 million in fiscal 2024, a 6.7 percent decrease.
The insurance tax collected $176.4 million for the 2025 fiscal year, up from $163.3 million for the prior year, or a 13.1 percent increase.
The interest and dividends taxes produced $90.8 million, down from $184.3 million during the 2024 fiscal year, a decrease of 93.5 percent.
The levy was repealed Jan. 1.
The liquor commission returned $88.4 million in fiscal 2025, compared to $113.3 million the prior year, or a decrease of 25 percent and below estimates by 29 percent.
The utility property tax and the Statewide Education Property Tax were above what was collected in the prior year, while the communications, and beer taxes, and security revenues were below what was collected a year ago.
The Highway Fund derived mostly from the gas tax and vehicle registrations collected $269.8 million in fiscal 2025, compared to $266.8 million for the prior year, and was $9.3 million above estimates for 2025.
The Fish and Game Fund — mostly collected from licenses—- finished fiscal 2025 with $14.7 million raised, compared to $14.9 million the previous year, and was $1 million more than estimates.
Of the state’s revenue sources producing more than $175 million annually in fiscal 2025, three produced less than they did a year ago, and three produced more than a year ago.
The revenue from the Lottery Commission, one of the top six, goes to the Education Trust Fund and not the General Fund.
But the largest state tax source, business taxes, are by far the biggest issue facing budget writers for the next two years as budget writers are banking on a significant rebound in the second year of the current biennium.
Until June, business taxes had continually been below both last year’s returns and legislative estimates for much of the 2025 fiscal year.
Budget writers will be watching for the July revenue numbers to see if the trend continues.
Garry Rayno may be reached at garry.rayno@yahoo.com.