State revenues beat forecast in final quarter
Published 10:18 am Friday, July 11, 2014
ST. PAUL — Minnesota finance officials say state tax collections beat expectations for the final three months of the fiscal year.
According to the quarterly update released Thursday, state revenues for April, May and June were $235 million more than forecast.
Minnesota Management and Budget says the state raised $181 million more in individual income taxes than expected during the quarter. Most of that was because Minnesotans paid more in 2013 income taxes than expected, and tax refunds were below estimates.
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Sales tax revenues also exceeded forecasts. While corporate tax collections were $53 million less than expected, officials say big swings in corporate taxes are not unusual.
The update will undoubtedly factor into the governor’s race. Republicans contend the economy is sputtering while Democratic Gov. Mark Dayton has tried to present a more-upbeat picture.