No let-up in Minnesota’s tax haul as budget year ended
For the just-ended fiscal year, Minnesota government took in $636 million more than it was expecting, a state agency reported Wednesday.
The Department of Minnesota Management and Budget released a quarterly update that covers tax activity through June. The agency reported that all of the major types of tax collections were higher than anticipated. Combined, the haul exceeded earlier expectations by 2.8 percent above earlier projections.
Seventy percent of the excess money -- $450 million -- came through the individual income tax where withholdings and estimated payments were both up.
Nothing that the current economic expansion is now the longest on record, the department’s report said the U.S. growth outlook is stronger than thought for 2019 but is expected to wane heading into 2020.
“This occurs as global growth slows, tariffs dampen business investment, inventory building slows and the economy approaches capacity constraints,” the report said.
State lawmakers won’t know until a comprehensive forecast comes out in December whether they’ll have more money at their disposal heading into next year’s session.
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