(The Center Square) – New Hampshire's overall revenue collections continue to outperform state budget writers' projections, according to a monthly revenue report.
Tax receipts for September totaled $336.8 million, which is about $36.5 million above the projections for the state's two year budget and $56 million more than the previous year, according to the state Department of Administrative Services' monthly revenue report.
Business taxes for September totaled $203.6 million, which was $44.7% million above the state's original budget estimates and $58 million above the same month last year, the agency reported.
Year to date business tax collections totaled $259.3 million last month, which is up by more than $48.9 million over initial estimates and $63.4 million above the same month last year.
Despite the gains, New Hampshire's real estate market saw a slight dip in September with the real estate transfer tax producing $22.1 million, or $6% below budget projections.
Still, year-to-date real estate transfer taxes – which charges home buyers and sellers 75 cents for every $100 of property value – were nearly $8.4 million above initial estimates.
Tobacco taxes were also down last month, coming in $6 million below initial projections, with about $18 million collected by the state in September. Year-to-date tobacco tax collections were $63.3 million as of last month, or 7% below initial estimates.
Liquor revenue, as well as insurance taxes, were up 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 September were $35.2 million, which was about $8.4 million above projections and abou $500,000 higher than the previous year.
Year-to-date meals and rental tax collections were $21.5 million, up by 28.3% 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. The tax reduction went into effect earlier this month.
Sununu says the tax cut will provide relief for residents and visitors to New Hampshire and help spur the state's economic recovery.
The impact of those tax cuts, if any, is likely to be reflected the next revenue report detailing receipts from October.
The reduced rooms and meals tax was part of a buffet of tax cuts approved by the Republican-controlled legislature as part of the budget.
They included a cut to the business enterprise tax from 0.6% to 0.55% and lowering the threshold to pay business taxes, which means less businesses will be paying the levy.