FRANKFORT, Ky. — General Fund receipts rose 11.4 percent compared to February of last year. Collections for the month were $1,078.1 million, the largest February receipt total on record. Receipts have now grown 6.4 percent in the first eight months of FY23. All major accounts had increased over last February except for the individual income tax, which had a small decline due to earlier tax refund processing. Sales tax receipts led the way with the largest increase.
The official General Fund revenue estimate, which was revised upward by $1.4 billion, calls for 3.4 percent revenue growth in FY23. To meet the official revenue estimate, receipts can fall 1.7 percent over the last four months of the fiscal year.
Among the major accounts:
- Individual income tax collections fell 1.7 percent, or $8.6 million, in February due primarily to earlier processing of refunds compared to the previous tax year. Withholding grew by 2.4 percent despite the 10 percent decline in the tax rate as of January 1. Total income tax collections have grown 6.3 percent throughout the year’s first eight months.
- Sales and use tax receipts increased 18.4 percent for the month and have grown 10.7 percent year-to-date. February receipts included the first month of collections, with the 34 new services added to the sales tax in January.
- Combined corporation income and limited liability entity tax (LLET) tax receipts increased $5.7 million compared to February 2022, with collections of $8.4 million. LLET receipts declined by $3.0 to $3.6 million, while corporate income tax collections improved by $8.7 million with revenues of $4.8 million. For the year, combined revenues have increased by 5.4 percent.
- Property tax collections grew 11.7 percent for the month and have increased 7.7 percent year-to-date.
- Cigarette tax receipts fell 11.1 percent for the month and have decreased 6.0 percent year-to-date.
- Coal severance tax receipts rose 60.8 percent, or $3.7 million, in February and have increased 57.4 percent through the first eight months of the fiscal year.
- Investment income contributed $16.4 million in General Fund receipts due to higher interest rates and investable balances.
Road Fund receipts grew 1.3 percent in February as collections totaled $133.1 million. Total revenue has grown 3.8 percent through the first eight months of FY23. Motor fuel collections grew 2.7 percent, while gasoline usage tax receipts rose 2.0 percent. License and privilege collections fell 7.3 percent due to fluctuations in the other fees account. The official Road Fund revenue estimate calls for revenues to increase by 2.7 percent for the fiscal year. Based on year-to-date tax collections, revenues must increase by 0.8 percent for the remainder of the year to meet the official estimate.
