Minnesota tax receipts come in strong
- Article by: BAIRD HELGESON
- Star Tribune
- September 10, 2012 - 9:48 PM
Minnesota's August tax collections came in stronger than predicted, with revenue beating projections in all major areas.
The state took in $1.2 billion for the month, $41 million more than projected, according to Minnesota Management and Budget.
"That's good news. We like that kind of report," said state Rep. Greg Davids, a Preston Republican who chairs the House Taxes Committee. "We will take that every month."
Individual income taxes, sales tax and corporate taxes all outpaced projections.
The state took in $623 million in individual income taxes, $18.8 million above projections. State sales tax collections were $429 million, $16.4 million more than expected. Corporate taxes came in at 35.7 million, nearly 10 percent higher than predicted.
State Sen. John Marty, DFL-Roseville, said that after years of budget reductions and lagging revenue, he was glad to see more evidence that Minnesota's economy is gathering strength.
"I'd always rather be in the upside than the downside," said Marty, the ranking DFL member on the Senate Taxes Committee. "It is the kind of thing we hope for, showing signs that the economy is better than projected."
The August revenue snapshot comes as state budget officials are crafting a proposed two-year budget for the upcoming legislative session.
Monthly revenue totals are not a comprehensive look at the state budget. They can fluctuate wildly from month to month and do not include state spending, which can knock a budget out of balance or yield big savings.
The October revenue report will include a more complete three-month look at tax collections.
Baird Helgeson • 651-925-5044
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