Minnesota gets $145M extra in tax revenue
- Article by: BAIRD HELGESON
- Star Tribune
- October 10, 2012 - 9:05 PM
Minnesota tax collections beat estimates by $145 million over the past three months as the strengthening economy caused consumer spending to rise.
The state took in $3.75 billion from taxes and other revenue from July to September, 4 percent more than budget officials predicted, according to the Minnesota Management and Budget agency. The three months were the first quarter of the state's 2013 fiscal year.
All four major areas of revenue beat the estimates. Income tax collections were up $42 million, to $1.9 billion. Sales tax revenue edged up $17 million, to $1.02 billion. Corporate tax collections saw the largest percentage gain, up $41 million, or 15.3 percent.
An extra $45 million in other revenue came from an unexpected surplus in the workers' compensation plan and stronger-than-expected mortgage and deed taxes from home sales and mortgage refinancing.
Since February, revenue has exceeded projections by $444 million.
Budget officials warned that the economic rebound has not met expectations, however.
"The U.S. economy has not performed as well as hoped since the end of the Great Recession," according to Minnesota Management and Budget. "We have escaped the downward spiral. ... But we have not, as yet, been able to shake off the economic inertia produced by the longest and deepest recession in the post-war period."
State budget officials still see signs the economy will continue improving. However, the agency said, slow global economic growth and political uncertainty at home and around the country could be a drag on growth through next year.
The revenue assessment does not include a look at state spending, so the budget picture is not complete. A more nuanced look at state finances will come in early December.
Baird Helgeson 651-925-5044
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