State’s General Fund receipts down 3.8% in November, up 3.1% year-to-date

FRANKFORT, Ky. — Kentucky General Fund receipts fell 3.8% in November compared to last year, according to the State Budget Director. Total revenues for the month were down primarily because of a $34.8 million decline in property tax receipts. Receipts have now risen 3.1% for the first five months of the fiscal year and must increase 0.3% over the final seven months of FY21 to meet the recently adopted official revenue estimate of $11,729 million.

Among the major accounts:

• Individual income tax collections fell 0.8% in November as declines in estimated payments and withholding slightly offset a small gain in net returns. Through the first five months of FY21, receipts in this tax have increased by 3.5%. The withholding component of the individual income tax fell 1.2% during November.
• Sales and use tax receipts increased 3.9% in November, which ties August for the lowest monthly growth in the sales tax this fiscal year. Year-to-date growth in this account is now 6.3%
• Corporation income and LLET tax receipts fell 33.6% to $18.2 million in November. Receipts year-to-date have declined by 4.9%.
• Property tax collections declined 18% for the month and have fallen 4.3% year-to-date. November’s sharp decline is a result of seasonal timing patterns that are expected to move favorably in the next two months.
• Cigarette tax receipts rose 3% in November but are down 2.1% for the first five months of the fiscal year.
• Coal severance tax receipts spiked 102.4% to $7.3 million in November but are down 8.6% year-to-date.
• Lottery revenues grew 2.3% in November with a monthly dividend payment of $22 million.

Road Fund receipts for November totaled $127.9 million, a 3.3% increase from November 2019 levels. Year-to-date Road Fund receipts have increased by 1.7%. Based on collections through the first five months, Road Fund receipts must grow 9% over the balance of the fiscal year to meet the newly revised official FY21 estimate of $1,577.7 million.

Motor fuel tax receipts fell 3.6% in November and have decreased by 4.5% for the year. Motor vehicle usage tax collections rose 11.4% in November and have grown 11.8% through the first five months of the fiscal year.  License and privilege receipts grew 6.9% for the month and have risen 1.2% for the year.