By GARRY RAYNO, InDepthNH.org
CONCORD — For the third month in a row, business taxes and state revenues are well ahead of budget-writer projections.
After a slow start for the first month of the fiscal year, state revenues have been running ahead of estimates producing nearly a $90 million revenue surplus during the first one-third of the fiscal year, and about $145 million more than last year.
That should be good news for budget writers in the Democratic-dominated legislature that begins work in January on the state’s new biennial budget, instead of the grim numbers that budget writers faced two years ago when they slashed state aid to higher education, told state agency heads to cut more than $100 million from their budgets over the biennium and charged those on Medicaid premiums and higher co-pays to bring spending in line with revenues.
For October, not a large revenue month, the state coffers took in $176 million dollars, which was $14.8 million over estimates and $33.5 million more than a year ago.
For the first four months of the fiscal year, the state took in $851 million which is $89.7 million more than estimates largely due to business taxes, lottery earnings, the real estate transfer tax and interest earned on surplus funds.
For October, business taxes produced $43.9 million, which is $7.1 million more than estimates and $9 million more than a year ago.
According to the Department of Revenue, the higher business taxes were due to an increase in estimated payments.
For the year to date, business taxes have produced $361.9 million, which is $70.1 million more than estimates and $107.5 million more than a year ago.
The state’s second largest source of tax dollars, the rooms and meals tax, produced $32 million for the month, which is $300,000 over estimates and $2.1 million more than a year ago.
For the fiscal year to date, the levy produced $143.8 million, which is $300,000 more than estimates and $6.4 million more than a year ago.
According to the DRA the figures indicate taxable meals were up 2.1 percent over a year ago, and hotels were up 9.2 percent.
The real estate transfer tax produced $22.7 million in October, which is $600,000 more than estimates and $100,000 more than a year ago.
For the year to date, the levy produced $96.3 million which is $8.9 million more than estimates and $12 million more than a year ago.
The DRA said the October figures indicate the number of sales were down .8 percent and the values 1.6 percent below the same month last year.
The Lottery Commission produced $20.3 million in receipts to be transferred to the Education Trust Fund, which is $4.9 million more than estimates, but $5.2 million less than a year ago.
For the fiscal year to date, the Lottery has produced $48 million, which is $6.5 million more than estimates, but $10.4 million less than a year ago.
The video lottery terminals that produced new revenue for the first time last fiscal year, continue to track below estimates as they produced $5.6 million which is $1.6 million below estimates .
For the year to date, the terminals have produced $18.1 million, which is $4.6 million less than estimates.
The other category continues to perform better than anticipated mostly due to interest earned on surplus funds.
The category produced $19 million in October, which is $6.2 million more than estimates and $7.6 million more than a year ago.
For the first four months of the 2027 fiscal year, the category produced $42.5 million, which is $12.8 million more than estimates, but $4.2 million less than a year ago.
Other taxes and levies performing better than anticipated for the month were the tobacco and insurance taxes, while the communications and beer taxes, revenues from liquor and and security sales and court fines and fees were below estimates for the month.
The Highway Fund, comprised largely of the gas tax and vehicle registrations, produced $24.4 million for October, which is $100,000 more than estimates, but $200,000 less than a year ago.
For the year to date, the fund has taken in $95.1 million, which is $5.1 million more than estimates and $3.5 million more than a year ago.
The Fish and Game Fund, comprised of fishing and hunting licenses, collected $400,000 during October, which is $300,000 less than estimates and $200,000 less than a year ago.
The fund has collected $5.9 million for the year to date, which is right on estimates and $100,000 more than a year ago.
Garry Rayno may be reached at garry.rayno@yahoo.com