The Office of State Budget Director on Wednesday reported that March’s General Fund receipts grew 12.7 percent compared to March of last year.
Total revenues for the month were $1,178.3 million, compared to $1,045.9 million during March 2023. All the major taxes reported growth in March. Receipts have now grown 3.9 percent for the first nine months of FY24. For the just completed quarter, total General Fund collections grew 3.5 percent.
Growth rates for the three quarters of FY24 have been 6.9, 1.6 and 3.5 percent.
The official revenue estimate calls for 2.7 percent revenue growth for the fiscal year. To meet the estimate, receipts can decline 0.4 percent over the last three months of FY24.
“March General Fund receipts exhibited broadly-based growth equaling $132.4 million more than March of 2023,” State Budget Director John Hicks. “Over half of the monthly increase was attributable to the individual income tax, which saw the new pass-through entity tax collections total $93.2 million.
“The withholding component, while declining 4.1 percent, still indicated economic growth in wages and salaries when factoring in the 11.1 percent rate reduction in 2024. Wage growth, coupled with an 11.3 percent increase in major business taxes and a 6.7 percent bump in the sales tax, combined to show evidence of a vibrant Kentucky economy.”
Among the major accounts:
• Sales and use tax receipts rose 6.7 percent for the month and has grown 5.5 percent year-to-date. Sales and use tax collections have now risen for 23 consecutive months.
• Combined corporation income and LLET tax receipts rose 11.3 percent as both the LLET and corporation income tax collections increased. For the year, collections in these accounts have decreased 7.7 percent.
• Individual income tax collections rose 18.5 percent in March and have risen 1.9 percent through the first nine months of the fiscal year. Growth in March was largely a function of the pass-through entity tax with collections of $93.2 million.
• Property tax collections rose 36.5 percent for the month and have grown 4.4 percent year-to-date.
• Cigarette tax receipts fell 10.3 percent and have decreased 9.9 percent year-to-date.
• Coal severance tax collections fell 12.1 percent in March with collections of $6.7 million. Collections have decreased 20.5 percent through the first nine months of the fiscal year.
• Interest on investments grew 26.0 percent while posting $24.4 million in revenues.
Road Fund receipts for March totaled $172.1 million, a 13.6 percent increase compared to March 2023 levels. Year-to-date receipts have increased 7.3 percent. March’s increase was primarily due to motor fuels, which posted receipts of $75.5 million. The official Road Fund revenue estimate calls for revenues to increase 7.3 percent for the fiscal year.
Based on year-to-date tax collections, revenues must grow 7.3 percent for the remainder of FY24 to meet the estimate. Among the accounts, motor fuels rose 24.8 percent, motor vehicle usage revenue fell 1.4 percent, and license and privilege receipts increased 42.7 percent due to a timing issue in some accounts.
To access the monthly report, visit http://www.osbd.ky.gov.
Office of State Budget Director