Minnesota Tax Collections Beat Forecast

Published On: 25th July 2014

From the internet

Minnesota state tax collections exceeded expectations for the last three months of the fiscal year. This means that Minnesota is expected to complete the fiscal year with over $160 million more in revenues than they had forecast in February.

The quarterly update shows that the tax revenues for April, May, and June were $235 million more than forecasted. That followed a few months of figures that were lower than forecast.

According to Management and Budget, the state was able to raise $181 million more in individual income taxes than what was projected for the quarter. Most of that was due to Minnesotans paying more in 2013 income taxes than projected and tax refunds were less than estimated.

Minnesota sales tax revenues also soared past forecasts with corporate tax collections falling below expectations.

This update may have an impact on the governor’s race. There has been both optimism and pessimism that travel along party lines.

While the updates fluctuate from month-to-month, the latest release reminds everyone of the improved fiscal position that Minnesota has taken in recent years. Legislators are calling it a positive sign that Minnesota is moving in the right direction. More jobs have been created, businesses are growing, and the budget is balanced now and in the future.

Others say that Dayton has tried to distract Minnesotans from other issues, but the progress that the state has made has been undoubtedly in the right direction.

It is now estimated that the tax collections for the fiscal year will be just over $19 billion, which is $168 million more than projected in February 2014. This is good news since there were many taxes that were cut for middle class residents. Some taxes that had been voted in during 2013 legislative session were rescinded in 2014. There was some worry that this would cause the state to fall short in the way of revenues. In fact, it looks as if the state is going to end with an even greater surplus. The state’s fiscal year ended on June 30 and the official close is on August 15.

For a four month period, there was concern because the tax collections in the state had fallen below expectations for a four month period. However, officials always stress caution when they express figures on a monthly basis because they don’t account for changes that take place in the state’s spending patterns or hiccups when it comes to the timing of tax payments. The final figures will be available sometime after the official August 15 close of the fiscal year.