MN Revenue collections top predictions

01/11/2006

St. Paul Pioneer Press
Posted on: January 11, 2006

BRIEFING: MINNESOTA

Minnesota revenue collections in November and December were $36 million higher than predicted in the most recent fiscal forecast, the Finance Department announced Tuesday.

The $36 million equals a 1.3 percent increase over projections. A big increase in corporate income taxes and increases in several smaller taxes, including those paid when deeds and mortgages are filed, offset a dip in personal income tax collections.

State economist Tom Stinson warned against reading too much into the gain.

“It’s really within the margin of error,” he said of the $36 million.

The revenue totals were not affected by a judge’s Dec. 20 ruling that Minnesota’s “health impact fee” on cigarettes is illegal. The Revenue Department so far is still collecting the 75-cent charge, and lawyers for the state hope to persuade the judge on Jan. 18 to allow the department to continue levying it during an appeal.

The ruling on the tobacco fee could cost Minnesota $200 million a year.