State Revenues Down For Second Month In A Row For New Fiscal Year

By GARRY RAYNO, InDepthNH

CONCORD, NH — If state revenues continue on their current trend after the first two months of the 2026 fiscal year, the state would be facing a revenue deficit of more than $120 million for the first year of the new budget biennium.

Once again, business tax returns were the biggest drag on state revenues for August, down more than 30 percent of what budget writers anticipated.

For the month overall, state revenues were $5.8 million short, producing $128.8 million, and $21.4 million less than the previous year.

For the first two months of the 2026 fiscal year, the state collected $250.1 million, which is $10.3 million below estimates, and $21.4 million less than a year ago.

Business taxes produced $13.9 million in August, which was $6.3 million less than estimates, and $7.8 million less than a year ago.

For the year to date, business taxes produced $44.4 million, which is $9.5 million less than estimates and $10.8 million less than a year ago.

According to the Department of Revenue Administration, “the decrease in Business Tax revenue from the plan and prior year was due to a decrease in corporation payments.”

The state's second largest revenue generator, the rooms and meals tax, also was below budget writers’ expectations for the month, producing $36.3 million, which was $900,000 below estimates, but $2.2 million more than a year ago.

For the first two months of the fiscal year, the levy produced $69 million, which is below estimates by $1.2 million, but up $2.4 million from a year ago.

The DRA says the figures reflect a 4.6 percent increase in meals, and a .9 percent increase in hotels.

A bit of good news was the real estate transfer tax which produced $23.6 million for the month, which is $1.3 million more than estimates, and $3.8 million more than a year ago.

For the year to date, the levy has produced $44.4 million, which is $800,000 less than estimates, but $5.1 million more than a year ago.

The DRA says the figures reflect an 11.2 increase in transactions, and a 13.5 percent in values over a year ago.

The “Other” category continues to produce more than estimates at $8.8 million for the month, which is $2 million more than estimates, but $6.6 million less than a year ago due to the state’s dwindling accounts of surplus and federal money, although the DRA says greater interest payments are the reason for the August surplus.

For the year to date, the category has produced $17.9 million, which is $4.3 million more than estimates, but $10.4 million less than a year ago.

Also ahead of the revenue plan for August were the tobacco, insurance and beer taxes as well as securities revenues.

Along with the business and rooms and meals taxes, other levies below estimates for the month were transfers from the Lottery and Liquor commissions; the interest and dividends, communications, and utility property taxes; and court fines and fees.

The Highway Fund, composed mostly of the gas tax and vehicle registrations, was $2.1 million below estimates for August, producing $21.1 million, which is $2.2 million less than a year ago.

For the fiscal year to date, the fund has received $44.1 million, which is below estimates by $2.1 million and $2.2 million less than a year ago.

The Fish and Game Fund funded by hunting and fishing licenses produced $2 million in August, which is $100,000 million less than estimates, but $100,000 more than a year ago.

For the year to date, the fund has received $4.5 million, which is $100,000 less than estimates, but $300,000 more than a year ago.

July and August are not large revenue months for the state, but September is particularly for business tax collections.

Also the video lottery terminal revenues from charity gambling that the state is depending on this biennium, will not begin tabulating until October.

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.