Minnesota’s Tax Report for May Shows Stronger-Than-Projected Revenue Totals

(KNSI) – The state of Minnesota brought in $1.796 billion more than expected in tax revenue during the month of May.

The Minnesota Management and Budget office released its May report on Thursday, affirming that the state’s net general fund revenues came to $3.3 billion that month. The office had projected in February that the state would see $1.5 billion in tax revenue during May.

The most significant bump in revenue when compared to the February forecast was in the state’s individual income tax revenue. The February forecast projected the state would see $627 million in individual income tax revenue, but the state actually brought in $2.33 billion, a difference of $1.704 billion. That’s a 272 percent increase over the projected value. The delayed federal and state tax filing deadline of May 17 was a likely contributor to this higher-than-projected revenue total.

Revenues for general sales tax and corporate franchise tax also exceeded expectations, bringing in $534 million and $53 million in revenue, respectively, during May.

In response to the report, Gov. Tim Walz said the state’s economy is strong.

“This strong economic outlook proves 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 Recovery Budget will allow us to continue to rise and rebuild by supporting working families, students, and small businesses while further driving our state’s economic recovery.”

“While we are still enduring the financial impacts of the COVID-19 pandemic, today’s revenue report shows that Minnesota has the resources to make responsible and meaningful investments that help those who were hit hardest recover,” said Lt. Gov. Peggy Flanagan.

___