Report: State takes in more tax money than expected

(AP) - A Department of Finance report released Monday shows the unexpected tax take amounts to $447 million for fiscal year 2006, which ended June 30. That's about 3 percent higher than predictions made in February.

For the July-to-June fiscal year, Minnesota government pulled in about $15.48 billion in taxes, fees, fines and other payments.

The biggest source of the unanticipated money was from individual income taxes. Additional payments and a smaller demand for refunds left the state with an extra $261 million.

Corporate filers also sought less money back and made bigger contributions to state coffers, causing actual receipts to come in 11 percent, or $106 million, above projections.

Of Minnesota's big three taxes, only sales tax collections were close to earlier estimates.

Minnesota has gradually rebuilt its financial footing after several years of deep deficits.

The report only considers revenue and doesn't factor in spending patterns that could eat into the fiscal padding. A more comprehensive report looking at both sides of the ledger is due in late November.

The Legislature isn't scheduled to return to the Capitol until January 2007, meaning any positive balance will remain in government accounts until next year.

Neither Finance Commissioner Peggy Ingison nor State Economist Tom Stinson were immediately available to discuss the report.

It was welcome news to Gov. Tim Pawlenty, said spokesman Brian McClung.

"It's very hard to be pessimistic when the state has a 3.7 percent unemployment rate, one of the lowest in the nation; we've added jobs 11 months in a row; and when the state has $450 million above and beyond what's projected," he said.

The report contains some measured caution. It said the state's national economic consultant predicts the economy to grow at a slightly slower pace between now and year's end.

(Copyright 2006 by The Associated Press. All Rights Reserved.)

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