Minnesota’s tax collections for the year have fallen further behind earlier projections. State finance officials reported Wednesday that tax collectors took in $10 million less than expected in August. Individual income taxes lagged the most. In all, the state took in more than $1.3 billion last month.
For a fourth straight month, Minnesota’s tax collections have come in slightly below expectations. The Department of Minnesota Management and Budget reported Tuesday that the state took in $17 million less than anticipated in May. That’s 1.1 percent below the amount officials estimated in a February long-range forecast. Income and corporate taxes missed the mark the most.
Minnesota’s tax collectors took in slightly less than they were counting on in February and March, but finance officials aren’t sounding alarms.
Minnesota’s tax collections have come in $2 million below expectations in the first three months of the newly enacted state budget.
Minnesota collected 2 percent less in taxes in August than was originally expected, as revenue collections for the 2014 fiscal year droop slightly. Net general fund revenues totaled just under $1.3 billion in August.
Minnesota has missed its tax collection projections in July by about $21 million. The shortage is reflected in a Department of Minnesota Management and Budget memo released Monday. But officials caution that the results are preliminary and subject to change. The state began its new fiscal year in July with a state budget that raises taxes on high incomes, tobacco and some previously exempt purchases.
A quarterly check-up on Minnesota’s tax collections will also offer a glimpse of how the state’s economy is faring moving forward. The update was due out Wednesday from the Department of Minnesota Management and Budget.
Minnesota took in about $25 million more in tax revenue in May than was initially expected, as revenue collections for the year continue to perform above projections. The Department of Minnesota Management and Budget says Monday that general fund revenues of $1.4 billion in May were 1.9 percent above the agency’s February forecast. In the year to date, the state has collected $324 million more than predicted in that forecast.
Minnesota collected more tax revenue than forecast in November and December.
Minnesota’s revenue is doing better than expected in the new budget year after August tax collections beat expectations.
The state of Minnesota is $148 million ahead of its revenue projections for the year after last month’s tax collections beat expectations.
Minnesota’s government shutdown pushed state tax collections below projections for the first two months of the new fiscal year, as the state’s budget office sounds a note of warning about the U.S. economic outlook.
Minnesota tax collectors say they brought in $69 million more than they were anticipating for April, the latest strong report on the state budget front.
Minnesota took in $32 million more than anticipated during February and March as taxpayers withheld taxes on salary bonuses and businesses got smaller tax refunds.
First the good news: Minnesota tax collections exceeded expectations by $28 million the last two months.