Minnesota Tax Collections Point to Possible Budget Surplus
St. Paul, MN (KROC-AM News) - It is looking more certain that the next state revenue forecast will predict another budget surplus for the State of Minnesota.
A quarterly update from the Minnesota Office of Management and Budget shows overall tax collections during the previous three months were, once again, well above the amount predicted by the most recent state revenue forecast issued in February. The report put the net general fund revenue for July through September at just under $6 billion. That is $657 million, or 12.4 percent, higher than projected.
The state agency says individual income tax payments for the quarter came in 5.1 percent, or $155 million, above the projection, while income tax refunds were $46 million lower than the forecast. Sales tax receipts totaled just under $1.5 billion, which was $132 million or 9.7 percent higher than projected. Corporate tax payments, which accounted for the smallest overall amount, exceeded the forecast by more than 90 percent at $759 million.
The next state revenue forecast is scheduled to be released in early December as state lawmakers prepare for the 2022 session of the Minnesota Legislature. In addition to the much better than expected revenues in the first quarter of the state's fiscal year, overall state revenues for the previous fiscal year that ended June 30 were more than $2.6 million or, 11.2 percent higher than forecast.