Minnesota Summer Economy Outperformed Projections
St. Paul, MN (KROC-AM News) - The latest tax collection report from the State of Minnesota suggests the state’s economy performed better than expected this summer.
A new report from the Minnesota Office of Management and Budget shows, for a second straight month, Minnesota tax collections have come in significantly higher than predicted. The report says net general fund revenues for the month of August totaled $1.571 billion. That’s $202 million or 14.8-percent above the amount forecast by the Interim Budget Projection that was released in May to give state lawmakers and Governor Tim Walz guidance concerning the impact of the COVID-19 pandemic on the state budget.
The report shows individual income tax payments exceeded the projection by $88 million, while sales tax revenues were $111 higher than predicted and that corporate tax collections were about $9 million above the forecast. State revenues from fees and other miscellaneous sources came in $6 million below expectations.
The state's overall general fund revenues in July were $178 million, or 15.4 percent higher than predicted. Since the start of the fiscal year on July 1, state revenues total just over $2.9 billion. State officials say that number is $380 million, or just over 15-percent, over the amount projected by the report to lawmakers back in May.