Total revenue up 3.4% in Fiscal Year 2017
FRANKFORT, Ky. (Oct. 10, 2016) — General Fund receipts rose 4.9 percent in September, said State Budget Director John Chilton. Total revenues for the month were $991.7 million, compared to $945.0 million during September 2015. The General Fund has grown 3.4 percent so far this fiscal year (FY17).
The official General Fund revenue estimate for FY17 calls for revenue to grow 2.7 percent compared to FY16 actual receipts. Based on September’s results, General Fund revenues need to increase 2.5 percent for the remainder of the fiscal year to meet the official estimate.
“Total General Fund revenues grew by $46.8 million; of that total, sales and use tax collections accounted for $20.8 million,” Chilton said. “The remaining growth was spread among all measures of income taxes, property taxes, gross receipts taxes as well as miscellaneous taxes. After the first quarter of the State fiscal year, tax revenues are consistent with estimated levels and the budget appears to be balanced at this time from a revenue perspective.”
Among the major accounts:
- Individual income taxes increased 4.7 percent as gains in withholding and declaration offset declines in fiduciary and net returns. Year-to-date collections are up 4.8 percent.
- Sales tax revenues grew 7.9 percent in September and have increased 4.2 percent for the year. Sales growth in September was at the highest rate since an 8.3 percent surge in April.
- Corporation income tax receipts increased 3.4 percent for the month and have grown 9.3 percent in the first three months of the year.
- Cigarette taxes rose 0.8 percent but have declined 1.5 percent for the first three months of the fiscal year.
- Property taxes rose 21.9 percent in September and are up 11.7 percent for the year. Typically, the first fiscal quarter has a relatively low level of collections, so the growth in this account should diminish as property tax bills come due later this fall.
- Coal severance tax fell 36.8 percent for the month. Year-to-date collections are down 36.6 percent.
- Lottery revenues grew 19.6 percent in September and are up 8.6 percent for the year.
Road Fund receipts grew 12.3 percent in September with collections of $123.5 million. Motor fuels collections continued their measured and steady growth. The rapid growth seen in this account in past years has been muted due to an unchanging tax rate.
Growth in this month’s motor vehicle usage tax receipts is artificially high due to a timing issue which understated in September 2015 collections.
The official Road Fund revenue estimate calls for a 1.7 percent decrease in receipts for the entire fiscal year (FY17). Based on year-to-date collections, revenues can fall 3.5 percent for the remainder of the fiscal year to meet the estimate.
Among the accounts:
- Motor fuels receipts rose 1.7 percent in September and have grown 1.1 percent for the year.
- Motor vehicle usage collections increased 41.2 percent for the month. Year-to-date collections are up 7.3 percent.
- License and privilege tax grew 2.6 percent in September. For the first three months of the fiscal year, receipts are up 6.8 percent.
- Nontax receipts decreased $430,000 in September and are down $600,000 for the year.