By GARRY RAYNO, InDepthNH.org
CONCOR — State budget writers ought to thank the budget gods for amnesty.
The numbers look good for December state revenues, but the three-month tax amnesty program inflated the bottom line.
Without the $45.8 million in amnesty money, the numbers would resemble the deficits of all but one of the past five months.
The state took in $329.1 million in revenue for December, which is $42.1 million more than estimated, and $49.3 million more than a year ago, but those figures include the nearly $46 million collected through the tax amnesty program which allows those who owe the state money to pay their debt without penalty and pay only half of the interest they owe.
The program, which resembles similar amnesty offers in the past, was proposed when Senate budget writers were looking for additional money last session.
Budget writers had expected the amnesty offer to produce at least $5 million. Before the program began, the state was owed $83.2 million in outstanding taxes.
For the first half of the 2026 fiscal year, the state received $1.21 billion, which is $38.8 million more than last fiscal year, and $35.9 million more than estimates.
Without the amnesty money, the total would be $7 million less than last year and $7.9 million below estimates.
According to the Department of Revenue Administration, the state historically takes in 38 percent of its fiscal year revenue in the first six months, and 62 percent in the second half of the fiscal year with large business tax filings in March, April and June.
Business taxes, which have been lagging, were ahead of estimates for December producing $168.1 million, which is $1.8 million ahead of estimates and $1.1 million ahead of last year.
According to the DRA, the increase in business tax receipts for December is due to higher corporate estimate payments.
For the year to date, business taxes have produced $451.1 million which is $5.7 million less than last fiscal year, and $20.9 million below estimates.
The state’s second largest revenue producer, the rooms and meals tax, produced $24.9 million in December, which is $400,000 below estimates and $500,000 less than last year.
For the first half of the fiscal year, the levy produced $193.4 million, which is $5.6 million more than a year ago, but $1.5 million below estimates.
According to the DRA, taxable meals were up 1.6 percent from a year ago, but hotel activity was down 3.8 percent.
The tobacco tax, which has been on a downward trend for some time, rebounded in December, producing $58.4 million, which is $300,000 above estimates and $500,000 more than a year ago.
For the year to date, the levy has produced $95.8 million, which is $300,000 above estimates, but $1.5 million less that a year ago.
The real estate transfer tax produced $78.4 million for the month, which is $1.7 million more than estimates and $700,00 more than a year ago.
For the first half of the fiscal year, the tax produced $128.6 million, which is $3 million more than estimates and $17.5 million more than a year ago.
According to the DRA the number of transactions are up 9.4 percent while values are up 5.8 percent from a year ago.
The “Other” category which has performed well over expectations for several years due to the interest earned on surplus and federal COVID funds came back to earth in December producing $10 million, which was $2.9 million below estimates and $800,000 less than a year ago.
For the first half of the fiscal year, “Other” produced $65.5 million, which is $17.7 million less than a year ago, but $11 million more than estimates.
Buoyed by a billion dollar PowerBall jackpot, the revenues from the Lottery Commission produced $20.5 million, which is $4.8 million more than estimates and what was produced a year ago.
For the year to date, the lottery commission has produced $99.3 million, which is $24.6 million more than a year ago, and $21.5 more than estimates.
However, the revenue from video lottery terminals or slot machines has been a disappointment with state budget writers banking on the new source of revenue for $45 million this fiscal year.
In December and for the fiscal year to date, the terminals produced $1.4 million, which is $7.6 million below estimates for the month and $10.6 million in the negative for the year.
The insurance, communications and beer taxes; liquor commission transfers; securities revenue, and court fines and fees were all below estimates for the month.
The Highway Fund comprised largely of the gas tax and vehicle registrations produced $21.2 million for December, which is $200,000 less than a year ago but right on estimates.
For the first half of the fiscal year, the fund totaled $130.4 million, which is $5.6 million less than estimates and $5.3 million less than a year ago.
The Fish and Game Fund, comprised of fishing and hunting licenses, collected $500,000 for the month, which is on estimates but $100,000 less than a year ago.
For the year-to-date, the fund collected $7 million, which is $100,000 below estimates, but $100,000 more than a year ago.
Garry Rayno may be reached at garry.rayno@gmail.com.