By GARRY RAYNO, InDepthNH.org
CONCORD — March state revenues are critical to New Hampshire’s fiscal landscape for the remainder of the fiscal year.
As the state begins the final quarter of the 2026 fiscal year, March revenues were a good omen as they were about 10 percent more than anticipated.
For the month, revenues were $411.5 million, which is $38.8 million more than estimates, and $23.1 million more than a year ago.
Although the vast majority of levies were behind for the month, several large surpluses in the insurance premium and business taxes and the Lottery Commission returns offset the negative numbers in most of the rest of the taxes.
For the year to date, revenues total $1.99 billion, which is $129 million ahead of the budget writer’s revenue plan and $107.8 million more than last fiscal year.
The figures include $108.3 million in tax amnesty payments that was not anticipated to be anywhere near that amount.
According to the Department of Revenue Administration, the “unusual windfall does inflate the statewide total, but it is important to note that even without the amnesty, regular revenues are still $30.5 million ahead of budget.”
March is one of the largest months for business tax receipts and did not disappoint, returning $138.4 million, which is $6.9 million ahead of estimates, but $800,000 less than a year ago.
For the year to date, business taxes produced $640.7 million, which is $32.5 million less than anticipated by budget writers $9.6 million less than a year ago.
According to the DRA, “the decrease from the prior year was due to decreases in estimates, tax notice payments and an increase in refunds offset increases in return and extension payments.”
The state’s second largest revenue producer, the rooms and meals tax, was slightly ahead of estimates for the month, producing $24.5 million, which is $800,000 more than estimates, and $2.9 million more than a year ago.
For the year to date, the levy has produced $268.6 million, which is $2.9 million below estimates, but $9.3 million more than a year ago.
According to the DRA, activities for the month were up 4.5 percent for taxable meals over a year ago, but down 1.5 percent for hotels.
The insurance premium tax for March produced $164.2 million, which was ahead of estimates by $28.8 million, and $24.3 million more than a year ago.
For the first three-quarters of the 2026 fiscal year, the levy returned $199.8 million, which is $27.4 million more than anticipated, and $15.1 million more than a year ago.
According to the DRA, “This month’s increase is due to the timing of prior month payments, as well as a temporarily elevated premium base.”
The “other” category which includes interest on surplus funds and other miscellaneous revenues was ahead of plan for the month by $5.2 million, producing 18.5 million, but behind last year’s collection by $1.7 million.
For the year to date, the other category has produced $108.4 million, which is $25 million ahead of estimates, but $15.2 million less than last year.
Lottery returns for the state’s Education Trust Fund were $20.6 million, which is $4.6 million more than estimates and $1.1 million more than last year.
For the first three quarters of the fiscal year, Lottery returns produced $179 million, which is $50 million more than estimates, and $39 million more than a year ago.
The DRA said the revenue increase is due to strong keno, iLottery and sports betting returns.
Tobacco tax receipts for the month were $16 million, or $2.9 million above plan and $4.2 million more than a year ago.
For the year to date, tobacco produced $137.7 million which is $2.9 million above estimates and $400,000 above a year ago.
The biggest disappointment continues to be the new video slot machine revenue which was late coming on line, but has been growing steadily since.
Budget writers anticipated it would produce $8 million in March, but produced $2.7 million.
The new revenue source produced $8.2 million this fiscal year to date, $24.6 million less than anticipated.
All other levies performed below their estimates for the month including securities revenues which were down $2.5 million for the month and the real estate transfer tax which was down $600,000.
According to the DRA, the number of real estate transactions was up 15 percent over a year ago, but the values were down by 17.2 percent.
The Highway Fund comprised largely of the gas tax and vehicle registrations produced $23.6 million for February, which is $1.3 million more than estimates and $1.2 million more than a year ago.
For the year to date, the fund totaled $198.6 million, which is $2.3 million less than estimates and $2.5 million less than a year ago.
The Fish and Game Fund, comprised of fishing and hunting licenses, collected $900,000 for the month, which is $400,000 less than estimates and $600,000 less than a year ago.
For the year-to-date, the fund collected $9.7 million, which is $200,000 less than estimates and $700,000 less than a year ago.
April is the biggest month of the fiscal year for business tax collections and those returns will be a good indicator of where the state is likely to stand financially at the end of the fiscal year June 30.
Garry Rayno may be reached at garry.rayno@gmail.com.