FRANKFORT, Ky. (Nov. 9, 2012) — October General Fund receipts rose 3.7 percent compared to last year, State Budget Director Mary Lassiter reported today.
Total revenues for the month were $725.5 million, compared to $699.8 million during October 2011. Receipts have increased 2.5 percent for the first four months of the fiscal year and need to grow 2.4 percent over the final eight months of FY13 to achieve the official revenue estimate of $9,307.8 million.
While some revenue accounts are experiencing month-to-month volatility, total General Fund collections are on pace to meet the official revenue estimates, Lassiter said.
“Revenues remain on pace to meet budgeted levels, but we are closely watching several accounts which have recently underperformed,” she said. “In addition to the documented weakness in the coal sector, sales tax collections have been lackluster through the first four months of FY13 with a 1.4 percent decline.”
Among the major accounts:
● Corporation income tax receipts increased $9 million in October because of lower refunds and increased collections on returns.
● Individual income tax collections rose 3.7 percent, bolstered primarily by estimated payments and payments with returns. Total individual income tax receipts are up 2.3 percent for the first four months of FY13.
● Sales and use tax receipts fell 2.5 percent in October despite an uptick in national consumer sentiment.
● Property tax collections increased 89.4 percent in October, and are up 77.9 percent year-to-date. Large swings in property tax revenues are typical in the fall months as the bulk of receipts in this category are received prior to January.
● Cigarette tax receipts grew 5.4 percent in October but are down 5.7 percent for the first four months of the fiscal year.
● Coal severance tax receipts fell 41.1 percent and are down 24.8 percent year-to-date.
● The Lottery dividend was $1 million below FY12 but year-to-date payments are on track to hit the projected level.
Road Fund receipts for October 2012 totaled $135.9 million, a 19 percent increase from October 2011 levels. Year-to-date Road Fund receipts have grown 5.6 percent. Based on year-to-date collections, Road Fund receipts must increase 3.1 percent to meet the official FY13 estimate of $1,499.6 million.
The Road Fund rebounded in October after a slow first quarter by posting growth of 19.0 percent on the strength of both vehicle and fuel sales. Motor vehicle usage tax receipts grew 12.4 percent for the month and have grown 2.2 percent year-to-date. Motor fuels taxes increased 16.2 percent in October bringing year-to-date growth to 6.0 percent. Among the other accounts:
● Motor Vehicle License taxes were up sharply in October but flat for the year.
● Weight Distance taxes also grew robustly because of timing anomalies.
● Motor Vehicle Operators taxes were down slightly but remain 4.2 percent ahead of the pace set in FY12.
The October Road Fund performance puts revenue collections ahead of recent internal revenue estimates, Lassiter said.
“October’s surge in Road Fund receipts brings year-to-date revenues back in line with the projections used in the budgeting process,” she said.