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Tax rebates predicted in 2001 for Minnesota
and Oregon
By Kay
Bell • Bankrate.com
Minnesota taxpayers should have some extra spending
money for the next few years if state tax office estimates hold
true.
The Minnesota Department of Finance is projecting
the state will end the 2000-01 fiscal year on June 30 with a surplus
of $924 million, $865 million of that from expected collections.
Under state law, any surplus over half a percent of biennial revenue
must be earmarked as available for a tax rebate.
For the past two years, Minnesotans have received
excess state collections as a sales tax rebate. Early revenue department
estimates show the average state taxpayer would get a check again
next summer of about $400.
Finance Commissioner Pam Wheelock says state
revenue projections also indicate that Minnesota could close 2002-03
with a budget surplus of more than $2 billion. She cautions, however,
that the longer-term projection assumes an extension of current
policies and relies on continued economic growth.
And, Wheelock adds that the department's calculations
are not a guarantee that taxpayers will get any rebates. That depends
on proposals in Gov. Jesse Ventura's upcoming budget and how they
are received by the next legislature, which begins meeting Jan.
3, 2001.
Oregonians looking to 2001
tax rebate, too
PORTLAND -- Oregon taxpayers also are looking at a possible 2001 tax
rebate thanks to their state's budget excess.
The Oregon Department of Administrative Services'
quarterly revenue forecast on Dec. 1 predicts refunds next year
for both personal and corporate income taxpayers. Under Oregon law,
when biennial revenues exceed the end-of-the-session legislative
forecast by more than 2 percent, the entire excess must be returned
to taxpayers. This surplus refund, better known as the kicker, may
be issued once every two years. Taxpayers got a kicker bonus in
1999.
The current financial forecast expects the total
general fund money for the 1999-2001 fiscal period that ends June
30 to be $10.2 billion, with personal income tax collections expected
to exceed projections by 3.2 percent. If the numbers hold up, state
officials say $293 million could go back to the state's individual
taxpayers in late 2001.
Corporate income tax revenue is projected to
exceed the forecast by 3.7 percent, meaning businesses could get
a total of $30 million in tax credits on their 2001 tax bills.
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