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State tax revenue beat projections for end of 2013

Posted by: under Minnesota campaigns, Minnesota legislature, State budgets Updated: January 10, 2014 - 5:04 PM

Minnesota tax revenue continued to beat expectations the last two months.

The state took in $3.3 billion for November and December, $172 million more than projected.

Income taxes, sales taxes and other revenue all came in higher than predicted.

Income tax collections lead the way, bringing in $1.4 billion, about $90 million more than the forecast.

Sales taxes were up $37 million over estimates, coming in at $838 million. Budget officials credit stronger than anticipated economic activity for at least some of the boost in sales tax collections.

House Speaker Paul Thissen praised state businesses and workers for the strong numbers.

“Minnesota’s economy has continued to grow at a faster pace than the rest of the nation, which is a testament to our great workforce and businesses,” said Thissen, DFL-Minneapolis. “Our economy is on the right track and we need to continue focusing on ways to make more progress.”

Budget officials cautioned against drawing firm conclusions from the numbers. The tax numbers can vary dramatically depending on the timing of tax payments and consumers' reactions to changing tax laws.

The forecast for the U.S. economy has already improved from a November analysis, giving budget officials new hope the economic recovery will accelerate.


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