State revenue running ahead of forecast
By Ashley H. Grant
ST. PAUL -- There was some encouraging news for state budget officers Monday -- the latest quarterly report on state tax collections shows an increase in corporate tax receipts, which have inexplicably lagged behind increases in other states.
"The good news is obviously that corporate has suddenly healed itself," said state economist Tom Stinson, adding that lower withholding and lower-than-expected job growth were causes for concern.
The report issued Monday for tax collections for the three months ended in September were slightly above what was forecast at the end of the legislative session. A more comprehensive report on the state's budget is to be issued Dec. 1.
Net general treasury revenues were $3 billion during the first quarter of fiscal year 2005, about $43 million -- 1.5 percent -- more than what was earlier estimated. Corporate taxes were $217 million, about $28 million more than anticipated.
The state typically takes in about $600 million in corporate tax revenue, less than 5 percent of total tax collections.