FRANKFORT, Ky. — The Office of State Budget Director reported today that November’s General Fund receipts fell 2.7%, or $33.7 million, over last year’s total. Revenues for the month were $1,197.9 million compared to $1,231.6 million in November 2022. Collections were down almost across the board, as only sales and gross receipt taxes and nontax receipts had revenue gains. Individual income tax revenues declined due to the drop in the tax rate.
Total General Fund receipts have now risen 3.9% for the first five months of the fiscal year and are well ahead of the amounts assumed in the current year’s budget. The Consensus Forecasting Group recently revised the official revenue forecast for FY24. It determined the official estimates for FY25 and FY26 for the General Fund and Road Fund, which will be used in the upcoming biennial budget process.
State Budget Director John Hicks remarked: “The small decline in General Fund revenues was not unexpected, as tax filers have begun to access some of the refundable credits from the newly enacted pass-through entity tax. The sales and use tax recorded a 19 consecutive monthly increase – a convincing sign of strong consumer confidence in Kentucky.”
Among the major accounts:
- Individual income tax collections fell 10.5% in November. Withholding declined by 6.1% due to the 10% income tax rate reduction. Through the first five months of FY24, receipts in this tax have increased 1.9%.
- Sales and use tax receipts increased 2.8% in November. Year-to-date, this account has grown 5.6%.
- Major business tax receipts fell 25.2% to $17.5 million in November. Receipts year-to-date have decreased by 5.8%.
- Property tax collections fell 7.0% for the month and are down 2.9% year-to-date. Large fluctuations in the property tax accounts are typical between November and January.
- Cigarette tax receipts rose 24.4% in November but are down 6.0% through the first five months of the fiscal year.
- Coal severance tax receipts fell 2.7% in November and are down 23.2 year-to-date.
- Lottery dividend payments grew 3.8% to $27.5 million monthly and are up 6.1% yearly.
- Income on investments increased $17.3 million in November, with revenues of $26.0 million.
Road Fund receipts for November totaled $152.5 million, a 7.1% increase from November 2022. Year-to-date Road Fund receipts have increased by 9.1%, far more than the current year’s budget estimates.
Motor fuels tax receipts grew 16.9% in November and are up 13.9% yearly. Motor vehicle usage tax collections rose 9.6% in November and have grown 5.3% through the first five months of the fiscal year. License and privilege receipts fell 19.6% for the month due to a timing issue and have declined 2.2% for the year.
