Minnesota takes in more tax money than expected in August

Minnesota Management and Budget says Minnesota’s tax collections are $41 million more than forecast for the month of August. The state agency says tax receipts for Fiscal Year 2013 (July and August) are now $31 million above forecast.

The report notes that Individual Income Taxes, Sales Taxes and Corporate Income Taxes are all higher than projected.

MMB Commissioner Jim Schowalter notes that the tax report should be interpreted with “great caution.” The agency will use the tax collection report as a guidepost for the state’s budget situation.

It should not be used, however, as a projection of whether the state will have a surplus or deficit in the next budget cycle. State spending is not included in these reports and will not be known until the complete budget forecast is released in late November.

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