(The Center Square) – New Hampshire's post-pandemic tax collections continue to exceed state budget writers' expectations, according to a monthly revenue report.
Tax receipts for August totaled $141.8 million, which is about $10.4 million above the projections for the state's two year budget, according to the state Department of Administrative Services' monthly revenue report.
Business taxes for August totaled $23.2 million, which was $3.7 million above the state's original budget estimates and $11.2 million above the same month last year, the agency reported.
Year to date collections were up by more than $55.7 million, or $5.4 million above the previous year, the report noted.
New Hampshire's real estate market saw a slight dip in August with the real estate transfer tax producing $23.5 million, or $1.7 % below budget projections. But the year-to-date real estate transfer taxes – which charges homebuyers and sellers 75 cents for every $100 of property value – were nearly $12.2 million above initial estimates.
Tobacco taxes were up $8.6 million over initial projections, with about $26.7 million collected by the state in August. Year-to-date tobacco tax collections are $49.8 million above estimates.
Liquor revenue, as well as insurance taxes, were also slightly above projections for the month, according to the report.
There were also revenue gains in meals and rental tax collections, with more businesses reopening and the restaurant and retail sectors rebounding from the pandemic.
Collectively, meals and rental taxes for August were $34.8 million, which was about $8.3 million above projections and $3.8 million higher than the previous year.
Year-to-date meals and rental tax collections were up by 26.6% over initial estimates, highlighting recovery in one of the state's hardest hit sectors, according to the report.
A two-year, $13.5 billion budget signed by Gov. Chris Sununu in June cut the state's rooms and meals tax from 9% to 8.5 % – the lowest level in more than a decade – and reduced the business enterprise tax from 0.6% to 0.55%, among other changes.
Sununu has touted the state's post-pandemic economic recovery, and says the tax cuts will provide relief for residents and businesses while keeping the economy humming.
Despite the revenue gains, the state report noted slight declines in communications, interest and dividends taxes in August, both of which came in below budget projections.