FRANKFORT, Ky. — The Office of State Budget Director reported today that October’s General Fund receipts rose 1.9%, or $23.2 million, over last year’s total. Revenues for the month were $1,236.8 million compared to $1,213.6 million collected in October 2022. October 2023 is the 14th consecutive month of General Fund receipts in excess of $1 billion. Receipts have increased 5.6% for the first four months of the fiscal year and can decline 2.9% over the final eight months of FY24 to achieve the official revenue estimate of $15.1 billion.
Revenue growth in the sales and gross receipts, property taxes and nontax collections overcame declines in individual income tax revenues.
Among the major accounts,
- Sales and use tax receipts grew 9.0% in October and are up 6.3% for the year. Year-over-year sales tax collections have now risen for 18 consecutive months.
- Individual income tax collections fell 9.3% for the month but are up 4.5% for the year.
- Combined corporation income and LLET tax receipts declined 6.8% as an increase in LLET revenues was insufficient to overcome a 34.1% drop in corporation income tax collections. Year-to-date, combined business tax receipts have decreased 4.6%.
- Property tax revenues grew 12.5% in October and are up 6.5% year-to-date. Due to the nature of property tax collections, there can be large month-to-month swings early in the collection cycle.
- Cigarette tax receipts fell 24.6% in October and are down 11.7% for the first four months of the fiscal year.
- Coal severance tax receipts were negative as several refunds were paid in the month of October, many of which were multi-period refunds bundled into a single request. Year-to-date receipts have declined 28.9%.
- Lottery revenues grew 12.4% to $38.5 million in October and have increased 6.6% for the year.
- Nontax receipts were up $35.0 million on the strength of income on investments, the Kentucky Lottery dividend payments, and miscellaneous revenues.
Road Fund receipts rose 7.9% in October as both motor fuels and usage tax receipts posted strong gains. Year-to-date collections have risen 9.6% compared to the previous year. Based on year-to-date collections, Road Fund receipts can fall 10.6% to meet the official FY24 revenue estimate of $1,680.9 million.
Motor fuels taxes rose 10.7% in October and are up 13.2% for the year. Motor vehicle usage tax collections grew 7.6% and have increased 4.4% through the first four months of the year. License and privilege revenues fell 5.9% in October but are up 4.3% for the year. Nontax receipts grew 65.3%, or $1.1 million, for the month and have grown 70.9% for the year.
