State tax revenues take another dip
Revenue in each of the state's major tax collection categories came in below expectations for the past three months, the Department of Minnesota Management and Budget reported Monday.
The dip in tax collections from July through September amounted to $97 million, which is about 2 percent of overall revenue for the quarter. It was the first three-month period of the new fiscal year. The prior 12 months ended with more than forecast, but even that was revised downward in the latest report.
Of the major taxes, individual income tax collections were off by the most money _ $29 million, or 1.1 percent. But the $18 million drop in corporate franchise taxes represented the greatest percentage gap from projections at 5.2 percent.
Officials warned that the U.S. economy "faces a high degree of uncertainty related to the outcome of the presidential election, the choices of the Federal Reserve, and possible production cuts by OPEC." The oil-producing countries in the Middle East could decide to limit supplies, which could force gas prices higher and affect economic growth.
This is the last state economic report prior to next month's election. In the month after the election, finance officials will produce a more-comprehensive review of taxes and spending. That forward-looking report will determine whether Gov. Mark Dayton and the new Legislature have a deficit or surplus when setting the next two-year budget in 2017.
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