Senate Ways and Means Committee finalizes budget estimates for 2025 to 2027

The Senate Ways and Means Committee of the New Hampshire Legislature convened on May 7, 2025, to discuss revenue projections and budget estimates for the upcoming fiscal years. The meeting focused on various tax estimates, including business taxes, rooms and meals taxes, and tobacco taxes, among others.

The session began with a brief acknowledgment of absent members and a light-hearted exchange about previous meetings. The primary agenda item was to establish revenue predictions to assist the finance committee in preparing the state budget.

The committee first addressed the business tax estimates for 2025. The House proposed a figure of $1,030,000,000, while the Department of Revenue Administration (DRA) provided a higher estimate of $1,630,000,000. After discussions, the committee settled on a compromise figure of $1,100,000,000, reflecting a cautious approach given current economic uncertainties.

Moving to the 2026 estimates, the committee reviewed the House's projection of $10.60 against the DRA's midpoint of $11.53. The committee ultimately agreed on a figure of $11.50, balancing optimism about economic recovery with concerns about potential recession risks.

The discussion continued with the rooms and meals tax for 2025, where the committee agreed on a figure of $334.5 million, slightly above the House's estimate. For 2026, they settled on $343 million, reflecting anticipated growth in the hospitality sector.

Tobacco tax estimates were also reviewed, with the committee adopting a figure of $1.83 for 2025, based on a compromise between the House and agency estimates. For subsequent years, they projected a static figure of $1.77 for both 2026 and 2027.

The committee also addressed the interest and dividends tax, agreeing on a figure of $103 million for 2025, and adopted the House's estimates for the following years. The communication services tax was level-funded at $29.1 million for 2025 and 2026, with a similar approach for 2027.

In discussing the real estate transfer tax, the committee agreed on $204 million for 2025 and $212 million for 2026, reflecting a cautious optimism about the housing market. For 2027, they settled on $225 million.

The meeting concluded with discussions on the lottery revenue, where the committee adopted a revised estimate of $220.3 million for 2026 and 2027, reflecting an increase based on the anticipated growth in gaming facilities.

Overall, the committee's discussions highlighted a cautious yet optimistic approach to revenue projections, balancing the need for fiscal responsibility with the potential for economic recovery in the coming years. The next steps will involve finalizing these estimates for presentation to the finance committee as they prepare the state budget.