State revenues looking strong for October

New Hampshire state revenue collections for the first quarter of the fiscal year were slightly off target – $2.8 million less than expected. October 2012 revenues, however, are looking stronger, and it is possible that shortfall-to-date could be erased by the end of this month.

The state fiscal year (we're now in fiscal year 2013) starts on July 1^st, so the first quarter includes the months of July, August and September.  In those three months, the state took in $398.8 million in “unrestricted revenues,” which includes the General and Education Trust Funds. The expected revenue total for that period was $401.6 million, so collections came in less than 1 percent below forecast.  However, the first quarter receipts were $7 million higher than last year’s (FY2012) first quarter receipts of $391.8 million.

Source: NH Dept. of Administrative Services, Monthly Revenue Focus Report

October is a relatively modest month for state revenue, with just $100 million expected to come in the door. (Only February and May are smaller months for state tax collections.) But the daily revenue reports for October 2012, with a week in the month still remaining, show that the state has already essentially hit the month's target.

In October 2011, an additional $6.3 million came into the state coffers in the final four days of the month.  If that pattern repeats itself this year, we could see state revenues for the first four months of the fiscal year ahead of projections.

Looking beyond the bottom line collections, New Hampshire business tax receipts in October have been above projections, as have meals-and-rooms tax receipts. Both tobacco and liquor sales, however, have seen shortfalls.

Comments

[NHCPPS]

Hi, and thanks for the question. The Center has not done any recent analysis of the impact of an income tax on NH’s overall tax structure, including the property tax. The last major study of that issue was in 2000-01, with Gov. Shaheen’s Blue Ribbon Commission on revenue options for education funding.
You can find that commission’s report here: http://www.gspriorities.org/sites/default/files/resources/PDF/BLUE%20RIBBON%20COMMISSION%20REPORT_0.pdf

[patricia sherman]

Has any one done a revenue analysis of a state income tax ( tagged to the Fed Tax ) with a concurrent reduction in the property tax. This income tax could be prorated by town/county or some other equitable measure to cover state wide issues as well as town needs such as education etc.