The Office of State Budget Director reported that November’s General Fund receipts fell 2.7 percent, or $33.7 million, over last year’s total. Revenues for the month were $1,197.9 million compared to $1,231.6 million in November 2022. Collections were down almost across the board as only sales and gross receipts taxes, and nontax receipts had revenue gains. Individual income tax revenues declined due to the drop in the tax rate.
Total General Fund receipts have now risen 3.9 percent for the first five months of the fiscal year and are well ahead of the amounts assumed in the current year’s budget. The Consensus Forecasting Group recently revised the official revenue forecast for FY24 and determined the official estimates for FY25 and FY26 for the General Fund and Road Fund, which will be used in the upcoming biennial budget process.
“The small decline in General Fund revenues was not unexpected, as tax filers have begun to access some of the refundable credits from the newly enacted pass-through entity tax,” said State Budget Director John Hicks. “The sales and use tax recorded a 19 consecutive monthly increase – a convincing sign of strong consumer confidence in Kentucky.”
Among the major accounts:
• Individual income tax collections fell 10.5 percent in November. Withholding declined by 6.1 percent due to the 10 percent income tax rate reduction. Through the first five months of FY24, receipts in this tax have increased 1.9 percent.
• Sales and use tax receipts increased 2.8 percent in November. Year-to-date, this account has grown 5.6 percent.
• Major business tax receipts fell 25.2 percent to $17.5 million in November. Receipts year-to-date have decreased 5.8 percent.
• Property tax collections fell 7.0 percent for the month and are down 2.9 percent year-to-date. Large fluctuations in the property tax accounts are typical during the period between November and January.
• Cigarette tax receipts rose 24.4 percent in November but are down 6.0 percent through the first five months of the fiscal year.
• Coal severance tax receipts fell 2.7 percent in November and are down 23.2 percent year-to-date.
• Lottery dividend payments grew 3.8 percent to $27.5 million for the month and are up 6.1 percent for the year.
• Income on investments increased $17.3 million in November with revenues of $26.0 million.
Road Fund receipts for November totaled $152.5 million, a 7.1 percent increase from November 2022 levels. Year-to-date Road Fund receipts have increased 9.1 percent, far in excess of the estimates used for the current year’s budget.
Motor fuels tax receipts grew 16.9 percent in November and are up 13.9 percent for the year. Motor vehicle usage tax collections rose 9.6 percent in November and have grown 5.3 percent through the first five months of the fiscal year. License and privilege receipts fell 19.6 percent for the month due to a timing issue and have declined 2.2 percent for the year.
To access receipts report, visit www.osbd.ky.gov.
Office of State Budget Director
