Minnesota Tax Collections Miss Target in February and March
St. Paul, MN (MinnesotaNow) - Higher-than-expected income tax refunds are being cited as the main reason overall state revenues were significantly lower than expected in February and March.
State Revenues $182 Million Short
A new report published by the Minnesota Office of Management and Budget shows that net general fund revenues for the two-month period totaled $3.779 billion. That is $182 million, or 4.6%, below the level forecast in the state revenue report issued in February.
Income Tax Payments Well Below Target
The state agency reported that income tax payments were $126 million, or 7.6%, less than predicted. The report indicates that gross tax revenues actually came in $17 million above the forecast, but that was offset by tax refund payments that were $142 million, or 8.9%, higher than projected.
Corporate tax payments for February and March were about $15 million, or 3%, below the forecast, and miscellaneous revenues from fees and other sources were more than $58 million, or 8%, lower than predicted.
The state sales tax was the only revenue category that beat the forecast. Payments were $17 million, or 1.5%, higher than predicted.
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Gallery Credit: Samm Adams