July shortfall projected in state tax collections - Bring Me The News

July shortfall projected in state tax collections

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Minnesota fell $21 million short of its projections for tax collection in July.

The Associated Press cites a memo from the Minnesota Department of Management and Budget released Monday that shows that the state took in just under $936 million in taxes. That's approximately 2.2 percent less than anticipated.

The shortfall showed up in spite of new, higher taxes on high incomes, tobacco and some previously exempt purchases that began with the start of of the new fiscal year in July.

The report reviews tax collections and does not assess spending patterns. Officials caution that the results are preliminary and subject to change. A more-detailed picture, due in October, will determine the amount of state IOUs to schools that will be repaid.

In June, the commissioner of the Management and Budget Department said that state tax collections were running ahead of expectations. Jim Schowalter credited the strengthening economy with putting the state on its best financial footing in years.

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