FRANKFORT, Ky. — State Budget Director John Hicks reported that General Fund receipts rose 6.2 percent in January compared to last year. Total revenues for the month were $1,288.1 million, $75.1 million more than was collected in January 2022. Receipts have grown 5.8 percent for the first seven months of the Fiscal Year 2023 (FY23). When adjusting for a one-time legal settlement received in September of FY22, General Fund receipts have risen 8.8 percent thus far in FY23.
All the major receipts categories had increased, with sales and gross receipts accounting for more than $37 million of the total $75.1 million increase.
Hicks noted that the continued strength in the Kentucky economy paved the path to revenue growth even with the impact of the January 1 effective date of a tax cut.
Among the major accounts:
- Individual income tax collections grew 2.1 percent for the month as increases in withholding and net returns offset a decline in estimated payments. Revenues have grown 7.6 percent through the first seven months of FY23.
- Sales and use tax receipts continue to be strong. Collections were $553.2 million, setting an all-time monthly record for sales tax. January was only the second month that sales tax receipts exceeded $500 million, the other time being in January 2022. Revenues have grown 9.9 percent year-to-date.
- Combined corporation income and LLET tax receipts totaled $49.9 million in January, an increase of 19.2 percent. Year-to-date collections have increased by 4.6 percent.
- Property tax collections grew 5.2 percent in January to $102.5 million. Collections through the first seven months now stand at 7.5 percent. Real and tangible personal property on motor vehicles led the way with double-digit increases.
- Cigarette tax receipts rose for only the second time this fiscal year, growing 1.1 percent for the month. However, year-to-date revenues have fallen 5.4 percent.
- Coal severance tax receipts remain strong, increasing 70.7 percent to $9.8 million. Collections have grown 56.9 percent through the first seven months of the fiscal year. January collections are the largest since February 2019.
- Income on investments continues to be a major source of growth in the General Fund. January’s receipts totaled $14.7 million as investable balances rise amidst an environment of rising short-term interest rates.
Road Fund receipts grew 8.8 percent in January to $144.1 million, primarily on the strength of motor vehicle usage tax receipts. Year-to-date collections in the Road Fund have increased 4.1 percent. The official Road Fund revenue estimate calls for revenues to grow 2.7 percent for the fiscal year. Based on year-to-date tax collections, revenues must increase 0.9 percent for the remainder of the fiscal year to meet the official forecast.
Among the accounts, motor vehicle usage revenue increased 21.3 percent, motor fuels collections fell 5.9 percent after rising 6.0 percent in December, and license and privilege receipts grew 9.3 percent.
Click here for more Kentucky business news.
