State revenue down 13% in February, down $41m for the year so far
Revenues for January and February are $28 million below estimates.
Although February is a small month for revenues, the state took in $71.1 million, $10.7 million less than budget writers' estimate of $81.8 million.
For the fiscal year to date, revenues are down $41.1 million, or 3.8 percent, although $34 million of the shortfall is from the Medicaid Enhancement Tax hospitals pay for in-patient services. The hospitals and the state disagree over how much is owed.
The most significant shortfall in revenue for February is the telecommunications tax which produced $2.5 million, while estimates were for $6.6 million, a 62 percent decrease. For the year to date, the levy is short $13.2 million.
Lawmakers last year barred the state from taxing Internet access. Department of Revenue Administration Commissioner Kevin Clougherty predicted the change in law would cost the state between $18 million to $19 million.
Business taxes are down $4.4 million, which includes $4.3 million in refunds. For the fiscal year, businesses taxes are $6 million below estimates of $268.6 million.
Refunds of $1.3 million in interest and dividends taxes also impacted revenues for the month.
Tobacco taxes continue to perform below estimates of $15.4 million, returning $13.2 million. The tobacco tax was reduced in the last budget by 10 cents a pack.
Department of Administrative Services Commissioner Linda Hodgdon said the good news for the month are the real estate transfer and rooms and meals taxes, both continue to surpass expectations.
New Hampshire Club Notes
Younger of two brothers convicted of murdering parents quietly released after 18 years in prison