House Fiscal staff detail Minnesota revenue mix, dedicated funds and property tax relief changes

House Fiscal analysts Cynthia Templin and Katrina Highmark told the Minnesota House Taxes Committee that most general fund revenue comes from income and sales taxes and that dedicated receipts and local levies change what the state can spend.

Telling members how tax revenue is collected and used, Templin said state tax collections deposited to the general fund totaled about $28.5 billion in fiscal 2024 and that income and sales taxes together account for roughly three-quarters of general fund tax receipts. “These two tax types are kind of like the anchors of total state tax collections,” Templin said.

Highmark, who leads the committee’s review of property tax aids and credits, said those aids and credits are the third-largest category of general fund spending after education and health and human services. “Property tax aids and credits is the third-largest spender of general fund dollars,” she said, noting total spending grew from about $1.3 billion in fiscal 2014 to roughly $2.8 billion in fiscal 2024.

Why it matters

The presentation framed the committee’s work for the session: because the general fund relies so heavily on income and sales taxes, changes in economic conditions and tax policy can meaningfully affect the state’s ability to fund schools, health care and local aids. The analysts also flagged a variety of dedicated receipts — both constitutional and statutory — that limit how some revenues may be used.

Key details from the presentation

- Aggregate totals: House Fiscal showed three concentric totals for fiscal 2024: state general fund tax…