Road fund receipts decline 7.4 percent
FRANKFORT, Ky. (Dec.10, 2012) — General Fund receipts grew 7.6 percent in November compared to last year, State Budget Director Mary Lassiter reported today.
Total revenues for the month were $784.2 million, compared to $728.7 million during November 2011. Receipts have now risen 3.5 percent for the first five months of the fiscal year, and would need to increase 1.7 percent over the final seven months of FY13 to achieve the official revenue estimate of $9,307.8 million.
While state and national economic conditions continue to improve, November receipts were helped by a low base of comparison last November and receipts from the Tax Amnesty program that ended Nov. 30, Lassiter said.
“We are working to determine the precise impact of Tax Amnesty on current collections, but early indications are that the Amnesty initiative was successful and well utilized,” she said. “The total impact of Tax Amnesty won’t be finalized until spring as many taxpayers opted to pay their back taxes over several months. We are pleased that November receipts are on track with projections and we are well positioned to hit the enacted budget estimate.”
Among the major accounts:
– Corporation income tax receipts declined $11.3 million in November due primarily to an unfavorable balance on net returns but are up 19.1 percent year-to-date.
– Individual income tax collections rose 10.7 percent due primarily to strength in withholding and net returns. Through the first five months of FY13, individual income tax collections have increased 3.8 percent.
– Sales and use tax receipts increased 4.6 percent in November but have fallen 0.3 percent for the year. Sales tax collections have been weak this fiscal year but the forecast calls for better growth in the remainder of the year.
– Property tax collections rose 16.4 percent and are up 35.7 percent year-to-date. Timing issues continue to affect property tax collections as well as real property receipts.
– Cigarette tax receipts fell 2.1 percent in November and are down 5.0 percent for the first five months of the fiscal year.
– Coal severance tax receipts declined 25.5 percent in November and are down 25.0 percent year-to-date.
– Lottery revenues grew 7.2 percent for the month and are up 3.4 percent for the year.
Road Fund receipts for November totaled $114.4 million, a 7.4 percent decrease from November 2011 levels. Year-to-date Road Fund receipts have grown 2.9 percent. Based on collections through the first five months, Road Fund receipts must grow 4.6 percent over the balance of the fiscal year to meet the official FY13 estimate of $1,499.6 million.
Motor fuels tax receipts continued to improve, increasing 6.4 percent and have grown 6.1 percent over the first five months of the fiscal year. Motor vehicle usage tax collections have been more volatile, over the first several months of the year, declining 0.4 percent in November, and showing growth of just 1.8 percent year to date. License and privilege receipts declined 44.6 percent and nontax receipts fell 28 percent, or $450,000. The weight-distance tax has experience greater volatility over the past several years so it is likely that a sizable portion of the decline is because of timing.