State revenue increased by $212 million over the previous forecast for the months of November and December, state officials said Monday.
The November forecast had predicted $3.306 billion, but revenue in November and December was $3.518 billion.
Higher individual income tax revenue, which was 11.6 percent higher than the forecast, led the increase. Corporate taxes, sales tax and other taxes were also up, though not as high.
The increased revenues reflect an improved economy since the November forecast, said the report from the Minnesota Management and Budget office:
Plummeting gas prices are freeing up household cash for other purposes and boosting confidence. Separate measures show that confidence among U.S. consumers and businesses have recently jumped to the highest levels since early 2007. These factors combine to provide solid evidence of improved overall economic growth. Looking ahead, the key to stronger consumer spending will continue to be stronger average wage growth.
MMB also said:
The individual income tax provided the largest amount of additional revenue, but much of this is believed to be due to timing of payments, rather than additional tax liability.