Minnesota tax report for May shows higher-than-expected total revenues
(KNSI) – The state of Minnesota brought in $1.796 billion more than expected in tax revenue during the month of May.
Minnesota’s Office of Management and Budget released its May report Thursday, saying the state’s general fund net revenue was $3.3 billion that month. The bureau forecast in February that the state would see $1.5 billion in tax revenue in May.
The biggest jump in revenue from the February forecast was in state personal income tax revenue. The February forecast predicted the state would see $627 million in personal income tax revenue, but the state actually brought in $2.33 billion, a difference of $1.704 billion. This is a 272% increase over the projected value. The postponement of the May 17 federal and state tax filing deadline likely contributed to this higher-than-expected revenue total.
General sales tax and franchise tax revenue also beat expectations, generating $534 million and $53 million in May revenue, respectively.
In response to the report, Governor Tim Walz said the state’s economy is strong.
“This strong economic outlook proves that the people of Minnesota are resilient, and we should continue to invest in them,” Walz said. “With this news, I expect our state’s legislative leaders to come together to pass a budget for all Minnesotans. Minnesota’s COVID-19 stimulus budget will allow us to continue to grow and rebuild by supporting working families, students, and small businesses while further spurring our state’s economic recovery.
“As we continue to experience the financial impacts of the COVID-19 pandemic, today’s earnings report shows that Minnesota has the resources to make responsible and meaningful investments that help those who have been most affected. hard hit to recover,” Lieutenant Governor Peggy Flanagan said.
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