February & March Minnesota Tax Revenues Topped Estimate by 6.5%
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St. Paul, MN (KROC-AM News) - The latest tax collection report from the state shows Minnesota's projected surplus for the current budget cycle continues to grow.
The Minnesota Office of Management and Budget is reporting that the states that general fund took in nearly $3.95 billion in February and March. That is $241 million or 6.5% above the amount predicted in the new state revenue forecast that was issued in late February.
The revenue forecast predicted a $3.7 billion surplus for the current biennium, which ends next June. It also projected a nearly $1.5 billion structural deficit for the next budget cycle that ends in 2027.
The tax collection report shows individual income tax payments totaled about $1.8 billion over the two month period. That was 4%, or about $70 million higher than forecast. State sales tax collections exceeded the projection by $24 million, or 2.3%, at just over a billion dollars.
The largest positive variant involved corporate tax payments. They were $110 million, or 28%, higher than predicted at nearly a half billion dollars in February and March. Other state revenues from fees, miscellaneous charges, and investments were 6.6% above the expected level at around $600 million.
Minnesota's economic consultant is also forecasting a slightly improved national outlook in the near-term. The S&P Global Market Intelligence report is now forecasting the US Gross Domestic Product will grow 2.5% this year, compared with the 2.4% prediction that was included in the February state revenue forecast.
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