By GARRY RAYNO, InDepthNH.org

CONCORD - State revenues collected in May, the second-to-last month of fiscal year 2026, came in modestly above the levels projected by budget officials.

The state remains on solid financial footing, posting a year-to-date surplus of $156.7 million that also exceeds last year's total by $124 million. Cumulative revenues stand at $2.92 billion with only June remaining in the fiscal period.

Officials continue to rely on non-recurring inflows such as the $103.8 million tax amnesty program, gaming proceeds, and earnings from invested cash to stay ahead, while several core revenue categories lag behind targets for the year so far.

Business taxes, the largest single revenue source, fell $6.2 million short of May estimates at $26.4 million and trailed the prior year by $5.9 million. Year-to-date business tax receipts total $947.2 million, $12.6 million below forecast yet $24.3 million ahead of last year.

The Department of Revenue Administration attributed the shortfall to higher refund activity combined with reduced tax payments.

The rooms and meals tax, the second-largest levy, generated $24.5 million in May, missing estimates by $400,000 but topping last year's figure by $600,000. Year-to-date collections reached $318 million, $4.4 million under target yet $9.5 million above the previous year.

Taxable meals declined 0.1 percent and lodging receipts fell 0.6 percent, according to the DRA.

The Lottery Commission delivered $17.1 million in May, exceeding estimates by $1.7 million and last year's amount by $700,000. Year-to-date lottery revenue stands at $216.5 million, $55.8 million above projections and $44.1 million higher than last year.

Lottery funds support the Education Trust Fund.

New video lottery terminals produced $4.1 million in May, falling $5.2 million short of estimates. Year-to-date terminal revenue totals $16 million, $35 million below forecast. Officials expect collections to rise steadily as additional machines come online.

The real estate transfer tax yielded $14.6 million in May, $200,000 above estimates and matching the prior year. Year-to-date receipts reached $211 million, $15.3 million over target and $27.2 million ahead of last year.

Transaction volume dropped 11 percent from a year earlier while total values declined 3 percent.

Securities revenues for May totaled $12 million, surpassing estimates by $4.5 million and last year's level by $4.7 million.

Tobacco, insurance, and utility property taxes, along with tobacco settlement payments, also exceeded monthly targets. Communications and beer taxes, court fines and fees, and liquor commission transfers came in below estimates.

The Highway Fund, funded mainly by the gas tax and vehicle registrations, collected $25.2 million in May, $2.4 million above estimates and $3.2 million more than last year. Year-to-date the fund reached $248 million, $2.3 million over target and $2 million ahead of the prior year.

The Fish and Game Fund brought in $1.5 million for the month, $200,000 below estimates and $900,000 less than last year. Year-to-date receipts stand at $12.3 million, $100,000 above forecast yet $700,000 below the previous year.

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