The Office of State Budget Director on Friday reported October’s General Fund receipts rose 1.9 percent, or $23.2 million, over last year’s total.
Revenues for the month were $1,236.8 million compared to $1,213.6 million collected in October 2022. October 2023 is the 14th consecutive month of General Fund receipts in excess of $1 billion. Receipts have increased 5.6 percent for the first four months of the fiscal year and can decline 2.9 percent over the final eight months of FY24 to achieve the official revenue estimate of $15,117.7 million.
Revenue growth in the sales and gross receipts, property taxes and nontax collections overcame declines in individual income tax revenues.
“The changes Kentucky has made to the individual income tax continue to greatly influence monthly receipts patterns,” said State Budget Director John Hicks. “Total income tax receipts fell $49.8 million. Part of that decline was a drop-off in withholding receipts due to the tax rate reduction. Lower collections in net returns and declarations, associated with the refundable credit created by the pass-through entity tax, were a second reason. The sales tax grew by 9.0 percent in October – once again showing that the Kentucky consumer is confident in the direction of the economy.”
Among the major accounts,
• Sales and use tax receipts grew 9.0 percent in October and are up 6.3 percent for the year. Year-over-year sales tax collections have now risen for 18 consecutive months.
• Individual income tax collections fell 9.3 percent for the month but are up 4.5 percent for the year.
• Combined corporation income and LLET tax receipts declined 6.8 percent as an increase in LLET revenues were not enough to overcome a 34.1 percent drop in corporation income tax collections. Year-to-date, combined business tax receipts have decreased 4.6 percent.
• Property tax revenues grew 12.5 percent in October and are up 6.5 percent year-to-date. Due to the nature of property tax collections, there can be large month-to-month swings early in the collection cycle.
• Cigarette tax receipts fell 24.6 in October and are down 11.7 percent for the first four months of the fiscal year.
• Coal severance tax receipts were negative as several refunds were paid in the month of October, many of which were multi-period refunds bundled into a single request. Year-to-date receipts have declined 28.9 percent.
• Lottery revenues grew 12.4 percent to $38.5 million in October and have increased 6.6 percent for the year.
• Nontax receipts were up $35.0 million on the strength of income on investments, the Kentucky Lottery dividend payments, and miscellaneous revenues.
Road Fund receipts rose 7.9 percent in October as both motor fuels and motor vehicle usage tax receipts posted strong gains.
Year-to-date collections have risen 9.6 percent compared to the previous year. Based on year-to-date collections, Road Fund receipts can fall 10.6 percent to meet the official FY24 revenue estimate of $1,680.9 million. Motor fuels taxes rose 10.7 percent in October and are up 13.2 percent for the year.
Motor vehicle usage tax collections grew 7.6 percent and have increased 4.4 percent through the first four months of the year. License and privilege revenues fell 5.9 percent in October but are up 4.3 percent for the year. Nontax receipts grew 65.3 percent, or $1.1 million, for the month and have grown 70.9 percent for the year.
Office of State Budget Director
