Minnesota tax revenues below projections for February, March

Author:
Updated:
Original:

The state raked in a bit less revenue than expected in February and March, but there's no cause for panic, Minnesota budget officials say.

Minnesota net general fund receipts totaled $2.637 billion during the months of February and March, which was $67 million, about 2.5 percent, less than forecasted in February, according to a four-page budget update released Thursday by the Department of Minnesota Management and Budget.

That compares to January when the state took in about $83 million more than anticipated.

The new update reports that the shortfall in the most recent two months had to do with the timing of payments that tax collectors anticipate will come in later.

The report also notes that individual income taxes were higher than expectations by about 2.2 percent. The breakdown for February and March:

Individual income tax:
Forecasted: $1.28 billion
Actual: $1.31 billion

General sales tax:
Forecasted: $702 million
Actual: $698 million

Corporate franchise tax
Forecasted: $317 million
Actual: $300 million

Other revenues
Forecasted: $405 million
Actual: $332 million

Budget officials in February announced that the state had a projected budget surplus of $1.2 billion for fiscal years 2014-2015. That was up significantly from an estimate from late last year. That forecast was important because it was the one state lawmakers have been using this session to guide their spending and tax decisions.

The quarterly updates like the one released Thursday are not used in guiding those decisions, the Associated Press notes.

Next Up

general mills

General Mills to buy pet treats business from Tyson Foods for $1.2B

The Golden Valley company will add a number of meat treats to its portfolio.

Twin Cities Pride 3

Twin Cities Pride is going ahead in July this year – but no parade

The in-person event will be held in Loring Park in Minneapolis.

Screen Shot 2021-05-14 at 12.27.58 PM

Rejuvenation, Williams-Sonoma's furniture brand, to open first MN location

It is moving into the former Restoration Hardware unit at the Galleria in Edina.

police lights

Charges: Driver pulled alongside, shot at motorist on I-35

The man is charged with second-degree assault.

classroom

7th Minnesota school employee dies from COVID-19

The death was confirmed by the health department.

duluth lighthouse

Want a lighthouse? The U.S. Coast Guard is giving one away in Duluth

Federal, state and local agencies, as well as some nonprofits are eligible to take over the lighthouses for free.

Related

Strong tax collections in May puts Minnesota ahead of revenue projections

Management and Budget Commissioner James Schowalter says better-than-expected sales tax collections last month helped pad Minnesota's budget. Since February, tax revenues have surpassed estimates by $148 million. An economic update will be released next month and a new budget forecast will be issued in November.

Minnesota tax revenues $100 million higher than projected

Minnesota Management and Budget officials say revenue from both income and sales tax are more than originally forecast. The latest projections in February showed Minnesota had a $323 million surplus.

Minnesota tax collections below January forecast

Minnesota Management and Budget reports general fund revenues were $107 million less than projected last month. Gov. Mark Dayton and legislators will get an update on the state's budget forecast February 29. The forecast in December showed Minnesota had an $876 million surplus.

Minnesota tax revenue in August beats projections

Tax receipts for August beat projections by 3.5 percent. Minnesota Management and Budget reports revenue from sales taxes and individual income taxes was strong. It's a turnaround from July, when revenue was lagging.