By GARRY RAYNO, InDepthNH.org
CONCORD — The bad news just doesn’t stop for state revenues for the first third of the fiscal year.
Dragged down by interest and dividends tax refunds for the repealed levy, state revenues for October were $12 million less than the revenue plan at $142.5 million.
For the first four months of the 2026 fiscal year, the state has taken in $705.7 million, which is $29.4 million below estimates and $58.7 million less than a year ago.
While the interest and dividends tax was repealed last year, budget writers anticipated late returns would provide $5.2 million in revenue, but instead the Department of Revenue administration issued $15.1 million in refunds, putting the levy $20.1 million under water.
The agency believes the majority of refunds have been issued, so going forward refunds will be significantly lower in the coming months.
Business taxes also continued to produce less than budget writers anticipated, returning $34.9 million which is $1.1 million below estimate, but $2.3 million more than a year ago.
To date, business taxes produced $254.4 million, which is $26.6 million below estimates and $18.9 million less than a year ago.
According to the DRA “the increase in this month’s business tax revenue over the prior year was due to a decrease in refunds issued. The decrease in year-to-date (returns) is primarily due to a decrease in corporation estimate payments.”
The good news to offset business taxes and refunds for interest and dividends over payments is the state has finally begun collecting taxes on video lottery or slot machine terminals authorized in this biennium’s budget package. Those returns will be reported in November’s revenues.
However, the Lottery Commission transfers to the Education Trust Fund were $8.9 million more than estimates for October, at $25.5 million. The DRA said the increase is due to high Powerball sales for a large jackpot.
For the year-to-date, the commission produced $58.4 million, which is $11.6 million more than estimates and $12.7 million more than a year ago.
The state’s second largest revenue producer, the rooms and meals tax, produced $29.9 million for the month, which is $1 million less than estimates, but $1.2 million more than a year ago.
According to the DRA, the figures reflect meal activities up 3 percent and hotels up 1.2 percent.
For the year-to-date, the levy produced $137.4 million, which is $ 1 million below estimates, but $5.5 million more than a year ago.
The real estate transfer tax produced $22.6 million in October, which is $1.4 million more than estimates and $2.5 million more than a year ago.
For the first four months of the fiscal year, the levy produced $84.3 million, which is $1.4 million less than estimates, but $9.7 million more than a year ago.
The DRA said the figures reflect an 8 percent increase in transactions from a year ago, and a 13 percent increase in value.
Interest income was responsible for the other category returning $11.4 million in October, which is $3.9 million more than estimates, but $6.8 million less than a year ago.
For the year-to-date, the category produced $46.7 million, which is $13.7 million above estimates, but $12.2 million less than a year ago.
Other levies returning more money than anticipated for October include the tobacco, insurance and communications taxes, while liquor returns, court fines and fees, securities returns and the beer tax were below estimates.
The Highway Fund comprised largely of the gas tax and vehicle registrations produced $22.5 million for October, which is $1.4 million less than estimates and $1 million less than a year ago.
For the first four months of the fiscal year, the fund has collected $89.7 million, which is $3.4 million less than estimates and $3.3 million less than a year ago.
The Fish and Game Fund, largely comprised of fishing and hunting licenses, collected $600,00 for the month, which is $100,000 less than estimates and $200,000 less than a year ago.
For the year-to-date, the fund collected $5.9 million, which is $100,000 below estimates, but $100,000 more than a year ago.
Garry Rayno may be reached at garry.rayno@yahoo.com.