TAX NEWS - June 2010

Minnesota tax collections beat forecast for May

The state of Minnesota collected more tax money than expected in May, beating its own forecast by $56 million.

An update released Thursday by Minnesota Management and Budget says that was 6.3 percent better than anticipated as sales taxes and corporate income taxes brought in more than expected.

State revenues for the fiscal year are now nearly $34 million above the amount budget watchers predicted in March.

But that money could quickly evaporate.

Management and Budget Commissioner Tom Hanson says net collections from individual income taxes are expected to be substantially worse than anticipated, potentially $150 million below estimates. His agency will report on that next month after processing is finished.

Thursday's numbers don't factor in state spending patterns, so they show only part of the state's budget picture.