Minnesota Drew $140 Million More than Anticipated in January
ST. PAUL (AP) – Minnesota’s government has scooped up $140 million more in taxes for January than finance officials had been counting on.
But the rosy revenue numbers reflected in a report Monday could have downside to them.
The Department of Minnesota Management and Budget says that the extra collections probably signal a race to beat new federal tax rates. The biggest portion of the additional money came via the individual income tax.
Officials speculate that some high-income filers accelerated their state and federal tax payments in anticipation of tax rate bumps included in the fiscal cliff deal. It could mean less money for state coffers later.
A full state economic forecast is due at month’s end. Any surplus dollars reflected in that report will be used to repay state IOUs to schools.
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