Where The Money Comes From
Where does New Hampshire get the money to fund the services we all use - from individual state agencies, public schools, state universities, law enforcement, highway projects and more?
|Other Funds - Educational Trust
|Fish and Game Funds
Chapter 223, Laws of 2011, HB 001, Section 1.07 summary. The pie chart does not include footnote reductions from Chapter 223, Section 2, Laws of 2011.
Unrestricted Revenue - General Fund and Education Trust Fund
Certain sources of funds are to be used for specific purposes. Federal program revenues are used only for the purposes of those programs. Also, revenues from Highway, Fish & Game fees, Turnpike Tolls and other "restricted purpose funds" are used only for expenditures within those funds. Unrestricted revenues are those sources of funds for use by the General and Education Trust funds. The chart below shows the "types" of revenue that are collected for these purposes.
|General and Education Fund Grouping
||Estimate FY 2013
|State Property Tax
|Meals and Rooms Tax
|Liquor and Beer
|Medicaid Enhancement Revenue
|Interest and Dividends Tax
|Real Estate Transfer Tax
|* Dollars are estimated in Millions and reflect Chapter 223, Laws of 2011 revenue estimates plus
respective adjustments included in Chapter 224, Laws of 2011 and as projected within
the Committee of Conference Surplus Statement.
Unrestricted Revenue Sources Defined
- Business Taxes
Business Taxes are comprised of the Business Profits Tax (BPT) and the Business Enterprise Tax (BET).
- Communications Tax - RSA Chapter 82-A
The Communications tax is assessed monthly at a rate of 7% on two-way communication service billings in excess of $12.
- Insurance Tax
The Insurance tax is equal to 2% of premiums on policies that insure risks within the State. The tax also applies to certain nonprofit health insurers and dental insurers.
- Interest and Dividends Tax - RSA Chapter 77
Interest and Dividends tax is imposed at 5.0% of income received from interest and dividends. In order to be subject to the tax, individuals must have at least $2,400 of interest and dividend income and joint filers must have at least $4,800.
- Liquor Sales and Distribution
By statute, all liquor sold in New Hampshire must be sold through a sales and distribution system operated by the State Liquor Commission.
- Lottery and Pari-Mutuel Transfers
Beginning in fiscal year 2000, the Lottery Commission remits all net profits to the Education Trust Fund (ETF) on a monthly basis.
- Meals and Rentals Tax - RSA Chapter 78-A
The Meals and Rentals tax is levied on charges by hotels, motels, restaurants, and other eating establishments.
- Net Medicaid Enhancement Revenues - RSA Chapter 84-A
The State's Net Medicaid Enhancement revenues represent collections from New Hampshire's hospitals. The major component is the annual 6% tax charged on every hospital's net patient service revenues.
- Real Estate Transfer Tax - RSA Chapter 78-B
The Real Estate Transfer tax is assessed on the transfer of real property at the rate of $7.50 per $1,000 of real estate value and is payable by both the buyer and the seller.
- Statewide Property Tax
A New Hampshire Supreme Court decision requires the State to provide an adequate public education, and to guarantee adequate funding.
- Tobacco Tax and Settlement - RSA Chapter 78
The tobacco tax is earmarked for the Education Trust Fund (ETF). The transfer to the ETF for the previous month's sales are deposited within the first week of the following month.
Annual Reports (Department of Revenue Administration)
Monthly Revenue Focus Report (Department of Administrative's Services - Division of Accounting Services)
Fiscal Year 2011