State Tax Amnesty Program Adds $103.8 Million To New Hampshire Coffers

By GARRY RAYNO, InDepthNH

CONCORD, NH — The state’s recently concluded tax amnesty program produced $103.8 million for its coffers.

The program was suggested last spring when Senate budget writers were searching for additional revenue needed to fund essential programs.

The program began Dec. 1, 2025, and ended Feb. 15. Under the program, delinquent taxpayers had a one-time opportunity to pay their outstanding taxes without penalties and with a 50 percent reduction in accrued interest.

The revenue will boost both the general and the education trust funds.

“We’re encouraged by the strong participation in the Tax Amnesty Program, which offered taxpayers an opportunity to come forward, resolve outstanding tax obligations, and return to compliance,” said Department of Revenue Administration Commissioner Lindsey Stepp. “This effort not only helped taxpayers eliminate debt, but also generated meaningful revenue for the state.”

Without the $103.8 million in revenue, the state would have a revenue shortfall of $8.3 million with three-quarters of the 2026 fiscal year on the books.

The most significant revenue shortfall this fiscal year has been business tax collections which were at the end of February $40 million below estimates with March and April numbers key indicators of business activity.

The state’s revenue picture would be even bleaker if not for the Lottery Commission producing $45.3 million more than anticipated for the first eight months of the fiscal year at $158.3 million earmarked for the Education Trust Fund.

The DRA said the higher collection numbers were driven by sports betting and historic horse racing, a video lottery game.

Without that additional revenue state revenues to date would be $56.3 million below estimates.

Stepp credited the legislature and governor for supporting the tax amnesty program along with her agency’s internal efforts and its promotion of the opportunity for taxpayers to come into compliance.

The DRA coordinated a similar tax amnesty program in 2016, raising nearly $19 million.

The bulk of the revenue generated by this year’s amnesty program came from business taxes, $96.7 million, the remaining collections are from the now repealed Interest and Dividends Tax, $4.4 million, the Rooms and Meals Tax, $1 million, the Communication Services Tax, $1 million, and the Tobacco Tax, $700,000.

Stepp said the amnesty program also helped to close a significant number of audit and collection cases and brought new filers onto the tax rolls.

The audit cases settled totaled $79.5 million from 692 returns with 94.6 percent from Business Taxes, 2.7 percent from Interest and Dividends, 1.2 percent from the Communications Services Tax, and 1.5 precent from the rooms and meals and the tobacco taxes.

The collection cases totaled $11.0 million from 1,780 returns with 87.3 percent from Business Taxes, 5.8 percent from Interest and Dividends, 6 percent from Rooms and Meals, and .9 percent from the Communication Services and tobacco taxes.

New filers produced $3.4 million collected from 850 returns with 91.7 percent from Business Taxes, 5.8 percent from Interest and Dividends, and 2.5 percent from Rooms and Meals.

Looking ahead, for March revenues, Business Taxes are estimated to total $131.5 million, the fifth highest for the fiscal year, and April is estimated to total $254 million, the highest month of the 2026 fiscal year.

Business taxes are projected to produce $1.13 billion for the 2026 fiscal year, or 28 percent of all state revenue sources.

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.