Minnesota January Tax Revenue Beats Forecast by Nearly 17%

St. Paul, MN (MinnesotaNet) - Minnesota tax collections in January were sharply higher than expected.

A monthly report from the Minnesota Office of Management and Budget says the state’s general fund revenues totaled nearly $3.6 billion last month. That was $513 million, or 16.7%, above the level predicted by the most recent state revenue forecast.

Individual Income Tax Payments Credited

Nearly all of the higher-than-expected revenue came from individual income tax payments. The report shows they totaled nearly $2.5 billion, which was almost $480 million more than projected.

Lower Than Expected Sales Tax Revenues

Corporate tax payments came in slightly above the forecast at $85 million, while sales tax revenues were $4 million below the projection at $729 million. State revenues from fees and other miscellaneous sources were reported at $293 million, which was $37 million higher than predicted.

Since the start of the current fiscal year, Minnesota has collected more than $19.4 billion in taxes and fees. That total is $558 million, or 3.1%, more than forecast.