Skip to main content
Updated:
Original:

Tax collected from Minnesotans $75M more than forecast in October

Author:

Minnesota collected almost $75 million more in taxes from citizens than anticipated in October, generating almost $1.7 billion in revenue.

The Minnesota Management and Budget Office (MMB) reported net revenues in October were 4.7 percent more than was predicted in February, with $1.687 billion collected.

Revenue from individual and corporate income taxes were $21 million and $19 million ahead of projections respectively, though sales tax generated $1 million less than expected.

It means that for that for the 2015 fiscal year, tax collections are up 0.5 percent, or $29 million, compared to earlier estimates, the Star Tribune reports.

Budget officials have cautioned people against reading too much into the figure, saying, "Wide swings in variances may be caused by variations in the rate at which receipts are received and refunds are issued."

It follows MMB figures released last month which showed the state was lagging $46 million behind its tax income projections after the first quarter of the fiscal year, in part because people withheld lower than expected amounts.

Minnesota tax revenue above pre-recession high

Minnesota has recovered from the financial crisis better than nearly all other states when it comes to tax revenue, according to the Washington Post.

The newspaper reported that, based on second quarter figures from 2014, Minnesota collected 16.9 percent more tax compared to the state's pre-recession high.

The figures were compiled by Pew Charitable Trusts, which found Minnesota had the third highest tax rebound following the recession, behind North Dakota, where the booming oil industry has sent tax revenues rocketing an incredible 119.2 percent, and Illinois.

The trust found that 29 states have still not matched their pre-recession highs, and said that the increases seen in Minnesota and Illinois is mainly down to tax increases implemented since the recession.

Tax hikes behind revenue increase

The increase in Minnesota collections seen in 2014 followed a series of tax hikes in 2013, which led to the Tax Foundation referring to Minnesota as "The Land of 10,000 Taxes".

The same organization ranked Minnesota 4th in the 10 least tax-friendly states in the country for businesses, highlighting a corporate income tax rate that is higher than everywhere else in the country except Washington D.C., USA Today reports.

Gov Mark Dayton signed a series of tax changes into law in May 2013, which was designed to generate $2.1 billion in extra revenue. It included a $1.60 per packet hike in cigarette taxes, and individual income tax hikes designed to hit the state's wealthiest, the Star Tribune reported.

This increase, which according to the Pioneer Press is the largest in state history, was used against Dayton by Jeff Johnson, his opponent in the Gubernatorial election.

But Dayton argued that the tax hikes had helped to eliminate the state's budget deficit and boosted funding for the state's schools, the Pioneer Press notes.

In May he signed into law $508 million in tax cuts for middle-income families and businesses as a result of budget surplus due to the hikes in 2013, MPR says.

He was re-elected comfortably in last Tuesday's election.

Next Up

unsplash football helmet ground

Judge upholds star QBs suspension for state championship game

Sam Backer, of Chatfield Senior High, won't be allowed to play in Friday's title game.

Screen Shot 2021-11-25 at 7.53.37 AM

Another 5,000 lbs. of goldfish removed from Carver County lakes

It all likely stemmed from people dumping their pets into local waters a few years ago.

Rosaleia Shelton

Appeal to find 19-year-old missing from Bloomington

The teen left her home on Monday afternoon.

hospital, emergency room

Deaths of twin fetuses after woman was shot ruled a double homicide

The woman was shot in the abdomen in mid-September.

Payton Willis / Gopher Basketball

Gophers improve to 5-0 with win over Jacksonville

The Gophers are establishing momentum early in the season.

Anthony Edwards

Ant's massive slam leads Timberwolves to fifth straight win

The dunk didn't count, but provided the highlight of the night.

Cam Talbot / Minnesota Wild

WIld arrive late, Cam Talbot stays on point to beat Devils

Despite a 30-minute delay, the Wild picked up a 3-2 victory.

Screen Shot 2021-11-24 at 4.10.54 PM

Appeal to find 35-year-old missing from Oak Grove home

Police say he's not believed to be in danger.

vote, election

7 MN Republicans urge states to audit 2020 election results

There has been no evidence of significant fraud in any single U.S. state.

Related

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 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.