The Office of State Budget Director reported that November’s General Fund receipts rose 5.1 percent over last year’s total. Revenues for the month were $1,259.4 million compared to $1,197.9 million in November 2023. Sales and use taxes grew strongly and individual income tax revenues had their first monthly increase of the fiscal year, primarily due to strong withholding collections and a more favorable balance on net returns.
Total General Fund receipts have now risen 1.0 percent for the first five months of the fiscal year and can fall 0.6 percent over the final seven months of FY25 and still meet the official revenue estimate of $15,572.9 million.
“November’s increased revenues were broadly based, showing strength in the sales and use tax, individual income tax, and major business taxes,” said State Budget Director John Hicks. “ The individual income tax account was particularly notable given recent tax law changes. Withholding collections, the largest component of the individual income tax, fell by only 1.8 percent – which is a very strong performance given the 11.1 percent decline in the tax rate for tax year 2024.
“The $30.1 million increase in the sales tax provided further evidence that the higher wages and salaries were put to use in the Kentucky economy through higher consumption of taxable goods and services.”
Among the major accounts:
• Individual income tax collections grew 4.1 percent in November. Through the first five months of FY25, receipts in this tax have decreased 14.9 percent.
• Sales and use tax receipts increased 6.6 percent in November. Year-to-date, this account has grown 0.7 percent.
• Major business tax receipts rose 130.3 percent to $40.3 million in November as both LLET and corporation income tax collections more than doubled last November’s amount. Receipts year-to-date have increased 91.6 percent.
• Property tax collections fell 1.6 percent for the month but are up 4.2 percent year-to-date.
• Cigarette tax receipts fell 25.8 percent in November and are down 11.5 percent for the first five months of the fiscal year.
• Coal severance tax receipts rose 17.4 percent in November but are down 1.4 percent year-to-date.
• Lottery revenues grew 3.6 percent to $28.5 million for the month and are up 3.8 percent for the year.
• Income on investments fell 18.0 percent in November but remain 22.4 percent higher thus far in FY25. Lower investable balances and lower short-term yields contributed to the monthly decline.
Road Fund receipts for November totaled $147.3 million, a 3.4 percent decrease from November 2023 levels. Year-to-date Road Fund receipts have increased 1.3 percent. Based on collections through the first five months, Road Fund receipts can decline 5.4 percent over the balance of the fiscal year and meet the official estimate of $1,825.0 million.
Motor fuels tax receipts fell 4.9 percent in November and are down 4.1 percent for the year. The decline in motor fuels taxes stems from a 7.6 percent reduction in the tax rate that became effective on July 1, 2024.
Motor vehicle usage tax collections declined 3.5 percent in November but have grown 6.5 percent through the first five months of the fiscal year. License and privilege receipts rose 5.0 percent for the month and have increased 2.7 percent for the year.
View the full report at osbd.ky.gov
Office of the State Budget Director