CONCORD – State taxes and fees suffered another subpar month in February, with business tax funds and a huge Internet access tax break fingered as the main culprits, according to a key Hassan administration official.
For the month, the state took in $71.1 million, or $10.7 million less than had been expected, Administrative Services Commissioner Linda Hodgdon said.
“This is not very welcome news,” Hodgdon said to reporters about the 13.1 percent decline for expected revenue in what is usually a light month for receipts.
But this follows on the heels of January, which brought in $17 million, or 14 percent, below that month’s forecast.
Through seven months, the $1 billion in the state treasury is $41.1 million, or 3.8 percent less, than had been hoped for by this time.
Hodgdon said three-quarters of that shortfall – $34 million – is in lowered payments from acute-care hospitals under the state’s Medicaid Enhancement Tax.
Several hospitals sued the state in federal court, alleging the state’s Medicaid reimbursement rates were too low. Then the Republican-led Legislature passed a state budget in 2011 that kept $200 million in MET payments that had been going back to hospitals in state aid.
The state’s two main business taxes fell off by $4.4 million, or 53 percent, for the month. Hodgdon said state tax officials have confirmed that business owners have applied for business tax refunds dating back the past year totaling $12.9 million.
During February, the state processed $4.3 million of those refunds.
Hodgdon said the remainder of the refund backlog will get booked in March, although she noted state tax officials may refuse some of the tax refund requests from business owners.
The other big tax hit came in the communications tax, which is an outgrowth of a big tax break the Legislature gave last year to cable companies that have broadband Internet customers.
Some firms were paying the 5.5 percent tax on the access charge for customers; others were not.![]()
![]()
![]()
![]()
![]()
![]()
↧