FRANKFORT, Ky. — Kentucky’s April General Fund receipts grew 2.0% with collections of $1.825 billion, an increase of $36.3 million over what was received in April 2023, the Office of State Budget Director reported today. Among the major accounts, sales and gross receipts, and the major business taxes increased in April, offsetting declines in individual income and property taxes.
“General Fund collections in April were the second highest month in state history, surpassed only by April 2022,” State Budget Director John Hicks said. “April is typically the highest month of collections each year due to corporation and individual income taxes, which have key collection dates for estimated payments and tax returns in the month of April. Receipts were driven higher this April due to growth in the pass-through entity tax (PTET) and the limited liability entity tax (LLET). Strength in business taxes in Kentucky demonstrates that the Commonwealth is a favorable place to locate and expand businesses of all types.”
Total receipts in the General Fund have now grown 3.6% through the first 10 months of FY24. State government’s official revenue estimate calls for growth of 2.7% for the current fiscal year. Receipts can decline 2.2% over the last two months of the fiscal year and still meet the FY24 budgeted estimate .
Among the major accounts:
- Sales and use tax receipts grew 1.4% to $524.5 million while year-to-date collections have increased 5.0%. Sales and use tax collections have now risen for 24 consecutive months.
- Corporation income and LLET tax receipts had double-digit growth for the second consecutive month. Revenues rose 12.6% in April but have declined 1.8% year-to-date.
- Individual income tax collections fell 2.4% in April but were once again dominated by $189.6 million in PTET receipts. Withholding receipts fell 19.9% in April, declarations were down 23.3% and net returns were off 45.7%.
- Property tax collections fell 25.2% in April, primarily due to declines in motor vehicle and omitted and delinquent receipts. Receipts have increased 3.2% year-to-date.
- Cigarette tax receipts grew 45.2% in April but have fallen 5.8% year-to-date.
- Coal severance tax receipts decreased 8.0% to $7.1 million in April. Revenues have declined 19.3% year-to-date.
- Interest income from investments posted receipts of $25.5 million, growing 37.3% compared to the same month last fiscal year.
- Road Fund receipts for April totaled $168.6 million, a 9.9% increase compared to April 2023 levels. Year-to-date growth in collections now stand at 7.6%. The official Road Fund revenue estimate calls for revenues to increase 7.3% for the fiscal year. Based on year-to-date tax collections, revenues must increase 6.0% for the remainder of the year to meet the estimate.
Among the accounts, motor fuel revenue rose 6.5% in April. Motor vehicle usage tax collections grew 18.0% while license and privilege receipts were up 3.3%.
To access the report click here.
