N.H.'s top tax official warns lawmakers record-high revenues won't last
New Hampshire has been collecting record-high tax revenue, but the state’s top tax official is bracing for a downturn and warning of a possible recession.
Overall collections on state taxes for this year are on track to outstrip estimates by 18 percent. Collections are also expected to top 2023 estimates by 15 percent.
But New Hampshire Department of Revenue Administration Commissioner Lindsey Stepp recently told lawmakers that inflation, a tight labor market, fuel costs and the housing crunch could add volatility to state tax collections in the coming months.
Testifying before the New Hampshire House Ways and Means Committee Monday, Stepp also cautioned that more serious shifts in the economy could be looming.
“We’ve been waiting for this impending recession for years now, and every time we think it’s coming, it hasn’t come yet, and hasn’t come yet, and hasn’t come yet,” Stepp said. “So, not to say it’s not coming; I think it is. It’s really a question of when.”