ST. PAUL -- Minnesota's finance agency reports state tax revenues for the past year are up $168 million from what was expected in February.
The increase over what was planned is 0.9 percent, with nearly $19.3 billion in revenue in the fiscal year that ended June 30. The upswing comes in contrast to several recent monthly reports that showed revenue dips.
Higher than expected individual income tax revenue is the reason Minnesota Management and Budget gave for the better news. While income taxes were up $181 million in the year, corporate taxes fell $55 million from expectations.
State finance officials reported the national economy “hit a deep pothole at the beginning of 2014.” However, problems that caused the downturn, such as extreme winter weather, appear to have disappeared and the economy is predicted to be steady, although the early-year woes are “expected to drag down this year’s overall economic performance,” a state report issued Thursday said.
