FRANKFORT, Ky. — Kentucky’s March’s General Fund receipts grew 12.7% compared to March of last year. Total revenues for the month were $1,178.3 million, compared to $1,045.9 million during March 2023. All the major taxes reported growth in March.
Receipts have now grown 3.9% for the first nine months of FY24. For the just completed quarter, total General Fund collections grew 3.5%. Growth rates for the three quarters of FY24 have been 6.9, 1.6 and 3.5%.
The official revenue estimate calls for 2.7% revenue growth for the fiscal year. To meet the estimate, receipts can decline 0.4% over the last three months of FY24.
State Budget Director John Hicks noted: “March General Fund receipts exhibited broadly-based growth equaling $132.4 million more than March of 2023. Over half of the monthly increase was attributable to the individual income tax, which saw the new pass-through entity tax collections total $93.2 million. The withholding component, while declining 4.1%, still indicated economic growth in wages and salaries when factoring in the 11.1% rate reduction in 2024. Wage growth, coupled with an 11.3% increase in major business taxes and a 6.7% bump in the sales tax, combined to show evidence of a vibrant Kentucky economy.”
Among the major accounts:
- Sales and use tax receipts rose 6.7% for the month and has grown 5.5% year-to-date. Sales and use tax collections have now risen for 23 consecutive months.
- Combined corporation income and LLET tax receipts rose 11.3% as both the LLET and corporation income tax collections increased. For the year, collections in these accounts have decreased 7.7%.
- Individual income tax collections rose 18.5% in March and have risen 1.9% through the first nine months of the fiscal year. Growth in March was largely a function of the pass-through entity tax with collections of $93.2 million.
- Property tax collections rose 36.5% for the month and have grown 4.4% year-to-date.
- Cigarette tax receipts fell 10.3% and have decreased 9.9% year-to-date.
- Coal severance tax collections fell 12.1% in March with collections of $6.7 million. Collections have decreased 20.5% through the first nine months of the fiscal year.
- Interest on investments grew 26.0% while posting $24.4 million in revenues.
Road Fund receipts for March totaled $172.1 million, a 13.6% increase compared to March 2023 levels. Year-to-date receipts have increased 7.3%. March’s increase was primarily due to motor fuels, which posted receipts of $75.5 million. The official Road Fund revenue estimate calls for revenues to increase 7.3% for the fiscal year.
Based on year-to-date tax collections, Road Fund revenues must grow 7.3% for the remainder of FY24 to meet the estimate. Among the accounts, motor fuels rose 24.8%, motor vehicle usage revenue fell 1.4%, and license and privilege receipts increased 42.7% due to a timing issue in some accounts.
To access the monthly report: http://www.osbd.ky.gov
