Receipts up 3.3% during first six months of fiscal year
FRANKFORT, Ky. (Jan. 10, 2017) — The Office of State Budget Director reported today that December 2016 General Fund receipts rose 2.9 percent compared to December 2015, an increase of $28.4 million. Total revenues for the month were $1,025.2 million, compared to $996.8 million during December 2015. Receipts have increased 3.3 percent for the first six months of the fiscal year that ends June 30, 2017. Second quarter collections rose 3.3 percent, only slightly lower than the first quarter total of 3.4 percent.
The official FY17 revenue forecast calls for 2.7 percent revenue growth. Revenues would need to grow 2.1 percent for the last six months of the fiscal year to meet the estimate.
Road Fund receipts for December 2016 totaled $111.5 million, a 13.4 percent decrease from December 2015 levels. Year-to-date receipts are essentially unchanged for the first six months of FY17. The official revenue estimate projected a 1.7 percent decline for the fiscal year and receipts would need to fall 3.5 percent to meet the estimate.
Among the major accounts:
- Sales and use tax receipts rose 2.8 percent in December 2016 and have increased 1.8 percent for the year.
- Corporation income tax receipts decreased 7.6 percent but are up 19.7 percent for the year.
- Individual income tax collections rose 2.0 percent in December 2016 on the strength of estimated payments. Year-to-date collections in this account have increased 4.3 percent.
- Property tax collections fell 7.1 percent but are up 3.7 percent for the year.
- Cigarette tax receipts declined 16.1 percent in December 2016. For the first six months of the year collections have decreased 3.5 percent.
- Coal severance tax receipts decreased 16.8 percent in December and have fallen 30.7 percent for the year.
Road Fund receipts fell 13.4 percent, or $17.3 million in December 2016 due primarily to a timing issue in motor vehicle usage tax collections. Receipts for the month were $111.5 million compared to $128.8 million in December 2015.
Receipts are unchanged through the first six months of the year. Second quarter collections fell 3.6 percent, offsetting the 3.6 percent increase seen in Q1. Official Road Fund estimates call for a decrease in revenues of 1.7 percent for the fiscal year. Based on year-to-date tax collections, revenues can decline 3.5 percent for the remainder of FY17 to meet the estimate. Motor fuels receipts rose 8.1 percent in December 2016 and are up 2.2 percent for the first six months. Motor vehicle usage revenue fell 34.1 percent in December 2016 and has decreased 1.7 percent year-to-date. License and privilege receipts decreased 30.6 percent for the month and are down 2.2 percent for the year.