4.8% increase from last year
FRANKFORT, Ky. (Aug. 10, 2016) — State Budget Director John Chilton announced today Kentucky’s General Fund receipts for July, the first month of Fiscal Year 2017 (FY17), totaled $769.3 million, a 4.8 percent increase compared to July 2015 receipts.
The official revenue estimate for all of FY17 calls for revenue to grow 2.7 percent compared to full year FY16 actual receipts. Based on July’s receipts, General Fund revenues need to increase 2.5 percent for the remainder of the fiscal year to meet the official estimate.
State Budget Director Chilton noted that while the 4.8 percent growth of July is robust, the underlying revenue accounts reveal a more cautionary tone.
“July’s revenue totals were very encouraging, but sustainability of the current revenue trend remains a concern,” said Chilton. “Of the main revenue sources, only three saw growth and each had unique circumstances. Sales and gross receipts were inflated in July due to changes in the required tax payment dates for certain accelerated filers.”
“Without those additional monies, the sales and use tax would have been flat or negative,” he said. “Individual income tax revenue rose $40.9 million in July, and withholding taxes increased 13.4 percent or $39.5 million, a level that is unsustainable. Lastly, property tax revenue grew $4.5 million but this account frequently shows large fluctuations early in the fiscal year and cannot be counted on to recur.”
Among the major accounts, compared to July 2015:
- Individual income tax receipts rose 14.0 percent.
- Sales tax revenues grew 3.3 percent.
- Corporation income tax collections rose 36.6 percent.
- Cigarette tax collections fell 9.4 percent in July.
- Property tax receipts grew 56.2 percent.
- Coal severance tax revenues declined 46.7 percent.
- Lottery revenues increased 2.9 percent.
Road Fund revenues for July totaled $121.8 million, a 4.5 percent decline compared to last July. Chilton said collections were in line with expectations, saying “A timing issue helped bump up motor vehicle usage tax receipts last July while growth in motor fuels tax collections were moderate and based only on an increase in consumption.”
The official Road Fund revenue estimate for all of FY17 calls for revenue to decline 1.7 percent compared to full year FY16 actual receipts. Based on the first month’s receipts, revenues can fall 1.5 percent for the rest of the fiscal year and still meet budgeted levels. Among the major Road Fund categories, compared to July 2015:
- Motor fuels tax receipts rose 1.9 percent.
- Motor vehicle usage tax decreased 9.0 percent.
- License and privilege taxes fell 11.2 percent.