FRANKFORT, Ky. (Friday, February 10, 2012) — The Office of State Budget Director reported today that January’s General Fund receipts rose 8.6 percent compared to January of last year, an increase of $63.8 million. Total revenues for the month were $808.2 million, compared to $744.4 million during January 2011. Receipts have now grown 3.9 percent for the first seven months of Fiscal Year 2012 (FY12).
The official FY12 revenue estimate calls for 2.8 percent growth and requiress 1.4 percent growth for the last five months of the fiscal year to meet the revenue estimate.
Road Fund receipts for January totaled $117.9 million, a 10.0 percent increase over January 2011 levels. Year-to-date receipts for FY12 have grown 7.8 percent.
State Budget Director Mary Lassiter noted that even with strong growth in January, General Fund tax receipts are in line with the official budgeted revenue estimate.
“Combined sales and individual income tax receipts, which account for nearly 75 percent of General Fund collections, were virtually unchanged with a net increase of $2.3 million for the month. Large gains in sales tax collections were offset by a nearly identical decline in individual income tax receipts. Property tax collections, on the other hand, were up $53.1 million in January compared to last year. We caught up in January as property tax receipts were down 9.6 percent for the first six months of the year. Large swings in collection patterns are normal in this tax in which two-thirds of the revenue is collected in a three-month period.”
Among the major accounts:
• Individual income tax collections fell 6.5 percent but are up 1.9 percent through the first seven months of FY12.
• Sales and use tax receipts increased 6.7 percent for the month and have grown 4.6 percent year-to date.
• Corporation income tax receipts rose 0.8 percent and have increased 45.1 percent in the first seven months of the fiscal year.
• Property tax collections surged 86.2 percent and are up 4.7 percent year-to-date.
• Cigarette tax receipts increased 5.0 percent but have now fallen 5.4 percent year-to-date.
• Coal severance tax receipts grew 27.1 percent and are up 12.3 percent through the first seven months of the fiscal year.
• Road Fund receipts increased 10.0 percent in January 2012 with collections of $117.9 million. The official Road Fund estimate calls for an increase in revenues of 5.5 percent for the fiscal year. Based on year-to-date tax collections, revenues must grow 2.5 percent for the remainder of FY12 to meet that estimate.
Lassiter noted that “motor fuels tax receipts continue to gain strength and provide steady growth in the Road Fund.” Among the accounts, motor fuels rose 9.6 percent. Motor vehicle usage revenue rose 6.6 percent, and license and privilege receipts grew 24.3 percent.