St. Paul, MN (KROC-AM News) - After missing the target in November, the latest tax collection report from the state shows Minnesota's net general fund revenues for the final two months of last year were higher than expected.

The Minnesota Office of Management and Budget is reporting that overall revenues for November and December totaled more than $5.6 billion. That total is $380 million, or 7.2%, above the level predicted in the updated state revenue forecast that was issued in November.

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Since the beginning of the fiscal year, overall revenues are running 2.5% above the forecast.

The monthly report indicates the state collected $2.66 billion in income tax payments during November and December. That is $249 million, or more than 10%, higher than predicted.

Minnesota Management and Budget
Minnesota Management and Budget
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Sales tax revenues nearly matched the forecast at $1.25 billion, while the amount collected in corporate tax payments exceeded the forecast by more than 20% at $740 million. The state reported that revenues from fees and other miscellaneous sources were close to the target at $983 million.

Minnesota Management and Budget
Minnesota Management and Budget
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Looking forward, the state's economic forecasting consultant is indicating the outlook for the US economy over the next two years has worsened slightly since the updated state revenue forecast was issued in November. While the firm expects final numbers will show that the nation's real gross domestic product grew 2.8% last year, it now expects the GDP to grow only 2% this year and 1.7% in 2026. The report states the 2026 number has been revised downward by nearly a half of a percentage point.

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