FRANKFORT, Ky. — State Budget Director John Hicks reported that General Fund receipts increased 6.6 percent in August compared to last year. Total revenues for the month were $999.2 million, compared to $937.7 million during August 2021. So far this fiscal year (FY23), General Fund receipts have increased by 8.2 percent. Based on August’s results, receipts can decline by 8.6 percent for the remainder of the fiscal year and still meet the official estimate.
Director Hicks observed that the General Fund revenues continued their growth trend, rising 6.6 percent over last August, which had grown 12.5 percent over August of 2020. “General Fund receipts in August are typically heavily weighted by sales and withholding collections, which made up 86.0 percent of the revenues for the month. Sales and use tax receipts continued their trend of double-digit monthly increases with a growth of 12.6 percent in August. Withholding grew by 4.4 percent and 7.8 percent for the year. With two months in the books for FY23, the General Fund stands at 8.2 percent growth.”
Among the major accounts:
- Individual income tax collections rose 3.8 percent as withholding and estimated payments increased. Withholding receipts improved by 4.4 percent compared to last August.
- Sales tax revenues grew 12.6 percent in August and are up 12.4 percent through the first two months of the fiscal year. August marks the third consecutive month of double-digit growth in the sales tax.
- July and August are weak months for the major business taxes, as only 4.4 percent of the expected estimate for FY23 has been collected. Corporation income tax and LLET collections fell 71.2 percent for the month, a decrease of $11.9 million compared to prior year totals.
- Cigarette tax collections fell 9.8 percent for the month and have declined 1.3 percent for the year.
- Property tax receipts fell 2.4 percent in August but have increased 6.3 percent for the fiscal year. Large swings in receipts are not unusual early in a fiscal year for this account.
- Coal severance tax collections in August rose 58.1 percent to $5.5 million and are up 56.8 percent through the first two months of the fiscal year.
- Lottery revenues rose 8.9 percent to $24.5 million in August and are up 7.9 percent through the first two months of FY23.
Road Fund revenue fell 1.7 percent in August with revenues of $145.7 million and has decreased 1.0 percent for the first two months of the fiscal year. Motor vehicle usage and motor fuels revenues combined with increasing 3.3 percent. The official Road Fund revenue estimate calls for a 2.7 percent increase in receipts for FY23. Based on year-to-date collections, revenues must increase by 3.5 percent for the remainder of the fiscal year to meet the estimate.
Among the accounts:
- Motor fuels fell 2.2 percent in August and have decreased 0.7 percent for the year.
- Motor vehicle usage collections grew 9.7 percent for the month and have grown 1.6 percent for the first two months of the fiscal year.
- License and privilege tax fell 19.6 percent in August and is down 6.4 percent year-to-date.