Minnesota tax collections surpassed expectations by $168 million over the last year, boosted largely by stronger than expected income and sales tax revenue.
Minnesota tax collections beat annual target by $168 million
Stronger than expected income tax collections allowed state to keep budget forecast on track.
July 10, 2014 at 9:23PM
Revenue collections had lagged slightly the last few months, but surging state income tax payments allowed state to take in $235 million more than state budget officials estimated for that period.
Corporate income taxes were down slightly, but higher than expected sales tax revenue helped make up for it. The corporate tax is the most volatile, and wild swings are not uncommon.
Minnesota budget officials warn that the U.S. economy hit "a deep pothole" at the beginning of 2014, resulting in the worst quarterly performance since the depths of the Great Recession in early 2009.
Economic experts attributed the drop to a sharp swing in the trade deficit, a surprise fall in health care spending and extreme winter weather. The bad weather slowed consumer spending, housing, and industrial activity.
Economists say the economy is staring to improve rapidly, with faster employment and income growth, along with improving home and vehicle sales.
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