New Hampshire State Revenues Continue To Perform Below Expectations

By GARRY RAYNO, InDepthNH

CONCORD, NH — For the third straight month of the 2026 Fiscal Year, New Hampshire revenues are below estimates and below what was produced last fiscal year in the first quarter.

Once again, business taxes, the state’s largest source of money from taxation, were well below estimates for the month, which is the first large revenue-generating month of the fiscal year.

The business tax shortfall was cushioned by greater than anticipated revenues from two usually less reliable sources, interest income on holdings and Lottery Commission earnings generated by a large Powerball jackpot.

For September, the state took in $313.1 million, which is $7 million below budget-writer estimates for a balanced budget at the end of the biennium, and $37.1 million less than was generated during the first quarter of the last fiscal year.

If the trend continues state revenues would be more than $100 million below estimates for the fiscal year.

Business taxes generated $175.1 million for September, which is $16 million below estimates and $10.4 million less than what was raised a year ago.

For the year to date, business taxes have produced $219.5 million, which is $25.5 million less than estimates, and $21.2 million less than a year ago.

The Department of Revenue Administration said the decrease was due to lower corporation estimate payments.

The state’s second biggest cash raiser, the rooms and meals tax, produced $38.5 million for the month, which was $1.3 more than estimates and $1.9 million more than a year ago.

For the year to date, the levy has generated $107.5 million, which is $100,000 below estimates, but $4.3 million more than a year ago.

The DRA said the September numbers indicate taxable meals were up 5.3 percent, and hotel activity up 1.9 percent over a year ago.

The tobacco tax produced $16.5 million for September, which is $600,000 above estimates, and $900,000 more than a year ago.

For the year to date, the levy has raised $50.3 million, which is $1.8 million above estimates and $2 million more than a year ago.

The Real Estate Transfer Tax produced $17.3 million, which is $2 million below estimates, but $2.1 million more than a year ago.

For the first quarter of the 2026 Fiscal Year, the tax produced $61.7 million, which is $7.2 million more than a year ago, but $2.8 million less than estimates.

The DRA said the September revenues reflect a decrease of .5 percent on the number of transactions, but an increase in values of 10.5 percent compared to a year ago.

The “Other” category, which includes interest income, produced $17.4 million, which is $5.5 million more than estimates, and $5 million more than a year ago.

For the year to date, the category has taken in $35.3 million, which is $5.4 million less than a year ago, but $9.8 million more than estimates.

The Lottery Commission transferred $18.6 million to the Education Trust Fund in September, which is $3.5 million more than estimates, and $6.5 million more than a year ago. For the year to date, the commission has transferred $32.9 million, which is $8.4 million more than a year ago, and $2.7 million more than estimates.

The utility property, beer, and insurance taxes, along with securities revenues produced more than their estimates for the month, while court fines and fees and the communications tax produced less revenues than anticipated.

The Highway Fund, comprised mostly of vehicle registrations and the gas tax, produced $23.1 million for September, which is $100,000 more than estimates, but $200,000 less than last fiscal year.

For the year to date, the fund has taken in $67.2 million, which is $2 million less than estimates and $2.6 million less than a year ago.

The Fish and Game Fund, comprised of hunting and fishing licenses, produced $700,000 in September, which is $100,000 more than estimates and $200,000 less than a year ago.

For the year to date, the fund has generated $5.2 million which is on estimate, and $200,000 more than a year ago.

The next large revenue month is December.

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

This article first appeared on InDepthNH.org and is republished here under a Creative Commons license.