State collects $145M more than expected in Feb., March


Minnesota collected $145 million more than anticipated in February and March from its three primary tax sources – income taxes, sales taxes and taxes on corporations, according to a new revenue report, the Associated Press says.

Individual income tax collections for the two months were $57 million more than expected, due to higher than expected withholding receipts, the AP says. Officials say much of that variance may reflect only one-time differences in the timing of receipts, not a stronger than anticipated economy, the AP reported.

The state is on a bit of a roll. It also got a bit of good news in January, when Minnesota collected $140 million more in taxes than projected. The state beat tax projections in November and December, too.

But state lawmakers are still grappling with a gloomier broader picture. The latest budget forecast predicted a $627 million deficit over the next two years (although that was down significantly from a previous forecast of $1.1. billion).

Gov. Mark Dayton last month unveiled a new budget proposal that did not include many of the tax increases he had previously proposed.

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