FRANKFORT, Ky. (April 10, 2018) – The Office of the State Budget Director reported today that March’s General Fund receipts fell 3.9 percent compared to March of last year, a decrease of $30.3 million. Total revenues for the month were $740.6 million, compared to $770.9 million during March 2017. Receipts have now grown 3.8 percent for the first nine months of FY18. For the quarter, total General Fund collections grew 5.3 percent. General Fund growth rates for the three quarters of FY18 have been 2.9, 3.2 and 5.3 percent.
The official revenue estimate, approved by the Consensus Forecasting Group in December 2017, calls for 2.3 percent revenue growth for the fiscal year. To meet the estimate, receipts can decline 1.6 percent over the last three months of FY18.
State Budget Director John Chilton noted that even though collections were down for the month, there were still some bright spots in the revenue picture. “General Fund revenue collections were adversely affected this month by the individual income tax accounts. Income tax refund payments were slightly delayed in 2018 from February to March due to the Department of Revenue’s enhanced fraud detection initiative. This program ensures that only legitimate refund claims are paid and typically influences receipts during tax filing season in the months of February through April. On the positive side, sales and use tax receipts continued their strong showing while property tax collections proved to be robust. The Office of State Budget Director will be producing an internal forecast in the month of April to gauge how the latest tax receipts data will affect the outlook for the remainder of the year.”
Among the major accounts:
- Sales and use tax receipts increased 6.5 percent for the month and have grown 3.5 percent year-to-date. Growth in this account has exceeded 5.3 percent in five of the past seven months.
- Corporation income tax receipts rose by $26.0 million in March. For the year, collections have increased 5.1 percent.
- Individual income tax collections declined 23.7 percent in March due to timing issues regarding refunds. Collections have grown 5.2 percent through the first nine months of FY18.
- Property tax collections rose 3.1 percent for the month and have grown 3.7 percent year-to-date.
- Cigarette tax receipts decreased 7.0 percent and have declined 4.7 percent year-to-date.
- Coal severance tax collections fell sharply for the sixth consecutive month. Collections fell 31.6 percent in March and have decreased 10.9 percent through the first nine months of the fiscal year.
Road Fund receipts grew 4.1 percent in March 2018 due to a timing issue in motor fuels collections. Receipts for the month were $136.0 million, $5.3 million more than last March. Through the first nine months of FY18, receipts have decreased 0.8 percent. For the third quarter, total Road Fund collections fell 1.7 percent. Growth rates for the three quarters this fiscal year are -0.5, -0.3 and -1.7 percent. The official Road Fund revenue estimate calls for revenues to decline 0.3 percent for the fiscal year. Based on year-to-date tax collections, revenues must grow 1.2 percent for the remainder of FY18 to meet the estimate. Among the accounts, motor fuels rose 19.6 percent, motor vehicle usage revenue fell 2.7 percent, and license and privilege receipts declined 20.1 percent.
Additional information is available here:https://osbd.ky.gov/Publications/Pages/Monthly-Tax-Receipts.aspx