As reported in an article in the Nashua Telegraph recently, there may be further implications from the lack of growth in Meals and Rooms tax income for this year thus far. The M&R tax collected is $3.5 million lower than budget forecasts. The latest reports are that M &R collections for August are $22.6 million, which while down $1.1million below projections, but $400,000 ahead of last August.
Please note, an area of focus being considered to offset the deficit is of concern to our industry; namely increased audits. As reported in the Telegraph:
Aggressive auditing of business taxpayers and a one-time tax windfall from property and casualty insurers put the state in decent position to meet its revenue forecast this year, state officials said Tuesday.
“We should be OK for this year, but it’s the future that is cause for serious review,’’ said Sen. Lou D’Allesandro, Manchester Democrat, who chairs the Senate Ways and Means Committee.
Indeed, there are warning signs as taxes and fees from gasoline, dining out, hunting and fishing are all off the pace, state agency heads reported.
D’Allesandro said decisions made by the Legislature and the Bush administration have reduced federal and state revenue by $225 million over the next two-year budget cycle that begins July 1.
“This will all make for a very interesting budget season,’’ D’Allesandro said.
State taxes and fees came within two-tenths of 1 percent of the Legislature’s $1.6 billion estimate for the year that ended June 30.
Revenue Commissioner Phil Blatsos said getting 13 new auditors on the job produced an annual increase of $15 million from the state’s two main business taxes on corporate profits and business activity.
"I think the day may come we run out of areas of audit, but not in my lifetime," Blastos said.
