Amnesty And Lottery Save The Month For February New Hampshire Revenues

By GARRY RAYNO, InDepthNH

CONCORD, NH—Tax amnesty and lottery earnings are not thought of as predictable revenue sources.

Without the two sources of revenue returning far more money than anticipated, the state would be under water in revenues for February.

The tax amnesty program was expected to produce about $5 million to $6 million, but the three-month program has produced $103.8 million, including $41.5 million in February.

The bulk of the amnesty money is from business taxes, $96.7 million, while the now repealed interest and dividends tax has produced $4.4 million.

Lottery returns to the Education Trust Fund totaled $30.8 million for the month, which is $15.4 million more than estimates and $13.5 million more than a year ago.

For the year to date, the Lottery Commission has produced $158.3 million, which is $45.3 million over estimates and $37.8 million more than a year ago.

The Department of Revenue Administration says the strong numbers are due to sports betting and historic horse racing at the state’s charity casinos.

The good numbers help make up for the disappointing video lottery terminals or slot machines revenues which were added this fiscal year to boost sagging state revenues.

However, the terminals have been slow to take off and produced $2.2 million in February instead of the $6.9 million anticipated. For the year to date, the terminals have produced $5.5 million which is $19.3 million below estimates.

For February, state revenues totaled $176.2 million, which is $46.3 million over estimates and $47.7 million more than a year ago.

For the year to date, revenues total $1.58 billion, which is $90.5 million over estimates and $84.7 million more than a year ago.

Without the amnesty money the state would have a revenue deficit.

“It is important to note that without that unusual windfall, regular revenues remain $8.3 million behind budget for the year and the state’s largest revenue source, business taxes, are below plan by $39.4 million,” according to the Department of Revenue Administration.

For February, business taxes produced $18.7 million, which is $700,000 above estimates and $2.4 million more than a year ago. For the year to date, business taxes produced $502.3 billion, which is $8.8 million less than estimates and $39.4 million less than a year ago.

According to the DRA, the decrease from the prior year was due to a decrease in corporation estimates.

February is not a large month for business taxes, but March and April are and will be better indicators for the overall revenue picture for the rest of the fiscal year.

The state’s second biggest tax producer, the rooms and meals tax, produced $24.6 million in February, which is right on estimates, and $900,000 more than a year ago.

According to DRA, the activity for taxable meals was up 3.1 percent and for hotels was up 1.5 percent.

For the year to date, the levy produced $243.2 million, which is $6.4 million more than a year ago, but $3.7 million below estimates.

The only other revenue sources in positive territory were securities revenues and the communications tax.

All other revenue sources were below estimates for the month.

The biggest negative number was the insurance tax which was $3.9 million below estimates producing $14.6 million, which was $8.3 million below last year.

The DRA said the numbers reflect a timing of payments collected last month that normally would be credited to February.

The Highway Fund comprised largely of the gas tax and vehicle registrations produced $22.6 million for February, which is $2.7 million less than estimates but $1.3 million more than a year ago.

For the year to date, the fund totaled $175 million, which is $3.6 million less than estimates and $3.7 million less than a year ago.

The Fish and Game Fund, comprised of fishing and hunting licenses, collected $900,000 for the month, which is $400,000 less than estimates and $600,000 less than a year ago.

For the year-to-date, the fund collected $9.2 million, which is $100,000 less than estimates and $400,000 less than a year ago.

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

This story was originally published by InDepth NH.