State Revenue Tracks Higher than Expected

State revenues continued to track higher than projections for January led by business, rooms and meals, and real estate taxes and lottery earnings.

For the first month of the second half of the fiscal year, the state collected $193.4 million in revenue, $38 million more than estimates for a balanced budget, and $12 million more than a year ago.

For the year to date, the state has collected $1.38 billion, which is $167 million more than estimates and $136.7 million more than a year ago.

For January, business taxes produced $58.6 million, $22.2 million more than planned, and $16.7 million more than a year ago.

For the year to date, business taxes — state government’s single largest revenue source — have generated $560.4 million, which is $95 million above the revenue plan for fiscal year 2022, and $126.2 million more than a year ago.

According to the Department of Revenue Administration, “the increase in revenue net of refunds was primarily due to corporate estimated payments in addition to an increase in tax notice payments.”

The rooms and meals tax produced $20.2 million for January, but generated in December, which is $2.3 million above estimates, but $1 million less than a year ago.

For the year to date, the rooms and meals levy generated $195.2 million, which is $41.6 million above estimates and $5.6 million more than a year ago.

The December activity in the hospitality industry shows meals up by 26.8 percent and hotels up 72.5 percent from the same month last year, but the tax rate is lower this fiscal year.

One of the state’s most consistent revenue performers, the real estate transfer tax, produced $25.8 million, $10.6 million over estimates and $1.1 million more than a year ago. For the year to date, the transfer tax has produced $131.6 million, which is $20 million over estimates, and $26.1 million more than a year ago.

The DRA reported that transactions were down 18.3 percent from the same month last year  but values were up by 15.2 percent.

The Lottery Commission reaped the benefits of a large PowerBall jackpot, producing $16.6 million in revenue for January, which is $4.6 million more than estimates, but $100,000 less than a year ago.

For the year to date, the Lottery Commission has produced $72.9 million, which is $9.9 million ahead of estimates and $6.8 million more than a year ago.

Other taxes that produced more revenue than estimates for the month were the interest and dividends, insurance, securities and utility property taxes, while the tobacco and communications taxes, and liquor commission sales generated less than estimates.

The Highway Fund continued to rebound, producing $21.9 million for January, which is $1 million more than estimates and $1 million more than a year ago. 

For the year to date, the fund has collected $150.1 million, which is $6.6 million more than estimates, and $7.3 million more than a year ago.

The Fish and Game Fund is about where budget writers believed it would be.

For January the fund produced $1.2 million, which is $300,000 more than estimates and $400,00 more than a year ago.

For the year to date, the fund has collected $8.2 million, which is $600,000 more than estimates, but $100,000 less than a year ago.

Garry Rayno may be reached at garry.rayno@yahoo.com. 

This story is courtesy of InDepthNH, the NH Center for Public Interest Journalism.