Minnesota Extends Streak of Better Than Expected Tax Collections
St. Paul, MN (KROC-AM News) - Minnesota tax collections continued to exceed expectations in the final two months of last year.
The latest numbers reported by the Minnesota Office of Management and Budget put the state's general fund revenues for November and December at just over $4 billion. That is about $167 million, or 4.3 percent, above the level predicted by the brand-new state budget and economic forecast issued in late November.
Corporate tax payments far exceeded the forecast at $429 million. That was over 36 percent higher than the forecast. Sales tax revenues beat the projection by about 3 1/2 percent, while individual income tax payments were less than one percent lower than predicted.
The state agency notes the forecast for the national gross domestic product has improved since the November state revenue forecast was assembled. Its projections were based on a 3.1 percent annualized growth rate for the GDP but the economic consultant used by the state for its forecasting is now projecting the GDP will grow about four percent this year.