One year after New Hampshire lowered its cigarette tax by 10 cents per pack, tobacco tax revenue collected by the state continues to beat estimates.
According to the New Hampshire Union-Leader, “The tobacco tax was slightly ahead of target producing $19.2 million in July.”
Moreover, the only tax to produce less revenue last month than twelve months ago was the tax on beer.
Taxes on securities, utility consumption and gaming– like the beer tax– underperformed estimates.
The fact that cigarette tax revenues have beaten estimates in many months since the cut was implemented should reassure some Granite Staters who worried about the budget implications of instituting the cut.
New Hampshire Democrats continue to argue for the previous tax rate to be reinstated.