By GARRY RAYNO, InDepthNH.org
CONCORD — July was an inauspicious beginning to the state’s revenue collection for the 2027 fiscal year.
While revenues were $7.2 million below expectations, more troubling were business taxes which had shown evidence of rebounding at the end of last fiscal year, but began this one $8.5 million below budget writer’s estimate for the month.
July revenues totaled $126.5 million for the first month of the new fiscal year, while estimates were for $133.7 million. This collection was $5.2 million higher than last July.
Business taxes for July totaled $27.1 million, which were $8.5 million, or 23.9 percent, below estimates and $3.4 million, or 11.1 percent, below last July.
According to the Department of Revenue Administration, “the decrease was due to a decrease in tax notice payments as well as an increase in refunds compared to the prior year.”
The state’s second largest levy, the Rooms and Meals Tax, produced $34 million, which is $700,000 below estimates, but $1.3 million more than last year.
According to DRA, the June activity for taxable meals was up 2.4 percent and hotels were up 6.3 percent.
The Real Estate Transfer Tax for July produced $25.8 million, which is $1.2 million more than estimates and $5 million more than last July.
The number of transactions were up 6.5 percent over last year, and values were 21.2 percent.
The Tobacco Tax has been rebounding of late, and in July produced $17.4 million, which is $1.6 million above estimates and $800,000 more than a year ago.
The Other category continues to perform better than budget writers’ envisioned, returning $6.8 million, which is $1.7 million more than estimates, but $2.3 million less than a year ago.
Interest payments on state investments from past surpluses or federal COCID relief and rescue funds is mostly responsible for the good showing.
The Insurance Tax was also above estimates for the month, and the Lottery Commission, whose transfers to the Education Trust Fund helped buoy last fiscal year’s revenues, did not transfer funds this month as it made two payments last month.
Transfers from the Liquor Commission were below estimates for last month as were revenues from the communications and beer taxes, court fines and fees, securities collections and video lottery terminals.
The Highway Fund, comprised largely of the gas tax and vehicle registrations, produced $23.7 million for July, which is $1.1 million more than estimates and $700,000 more than a year ago.
The Fish and Game Fund, comprised of fishing and hunting licenses, collected $2.6 million during July, which is $200,000 more than estimates and $100,000 more than a year ago.
The 2026 fiscal year ended June 30 and the 2027 fiscal year began July 1.
Garry Rayno may be reached at garry.rayno@yahoo.com