From Gov. Hassan's office "The revenue report for June showing that state revenues are nearly $100 million ahead of plan for Fiscal Year 2016 is a clear sign that our economy continues to strengthen and reflects our sound fiscal management and the hard work of our state agencies. In light of these strong revenues, we have taken important steps to provide additional resources in combating the heroin and opioid crisis and to strengthen our long-term fiscal outlook by increasing our Rainy Day Fund. While this progress is encouraging, we know that we must continue working together to maintain fiscal responsibility, support job-creating businesses, and build a stronger, more innovative New Hampshire where all of our people who work hard have the opportunity to get ahead and stay ahead."
The tax on business profits was decreased from 8.5 percent to 8.2 percent, and the payroll tax (business enterprise tax) from 0.75 percent to 0.72 in the 2016 NH State budget. and were effective January 1, 2016. New Hampshire's fiscal year runs from July 1st through June 30th. With a decrease in the tax rates the increase in revenues is a good indicator that the economy is strong and businesses are getting stronger. Consumers are spending more supporting businesses around the state.
An indication of that resurgence may be the real estate transfer tax (RETT) revenue which was 12.6 percent over budget ( approximately $15 million). Per NH DRA the RETT is imposed on both the buyer and the seller at the rate of $.75 per $100 ( 1.5%) of the price or consideration for the sale, granting, or transfer. According to NH Realtors single-family home sales during the first three months of 2016 were at pre great recession levels. Many are being renovated creating jobs and allowing small business growth. The following chart is from the NH Employment Security and clearly shows a steady increase in job growth as we move out of the effects of the great depression.
According to the NH Fiscal Policy Institute, "the New Hampshire economy offers a number of encouraging signs. Both employment – the total number of people working in the Granite State – and economic output – the value of the goods and services those individuals produce – have been on the rise over the past several years. At the same time, the quality of New Hampshire’s workforce remains high, as its level of educational attainment continues to exceed that in most states, while the extent of severe economic hardship, as expressed by the state’s poverty rate, is still lower here than anywhere else."