FRANKFORT, KY (August 10, 2012) – Kentucky’s General Fund receipts for July, the first month of Fiscal Year 2013 (FY13), totaled $677.2 million, a 2.3 percent decrease compared to July 2011 receipts, state Budget Director Mary Lassiter announced today.
The official revenue estimate for FY13 calls for revenue to rise 2.4 percent compared to FY12 actual receipts. Based on July’s results, General Fund revenues need to increase 2.8 percent for the remainder of the fiscal year to meet the official estimate.
Lassiter noted that revenue collections have become a little more volatile, but the overall direction of growth is very much in line with expectations.
“Despite small General Fund revenue declines in three of the past four months, we are generally comfortable that our primary revenue accounts will produce receipts consistent with the official budget estimates,” Lassiter said. “Other states are experiencing similar patterns of increased monthly volatility in revenue collections as well.
“While we cannot control global economic conditions, the Governor’s Blue Ribbon Commission on Tax Reform has undertaken an exhaustive examination of our structural tax code to ensure that it produces stable and predictable revenues going forward into the 21st century.”
Among the major accounts:
● Individual income tax receipts fell 4.3 percent due to a decline in withholding receipts.
● Sales tax revenues were down 5.6 percent following strong growth in June.
● Corporation income tax collections rose 1.1 percent.
● Cigarette tax income fell 17.0 percent in July.
● Property tax receipts increased $16.2 million due to timing issues in omitted and delinquent receipts.
● Coal severance tax revenues declined 18.7 percent.
● Lottery revenues increased 3.3 percent.
Lassiter also announced that Road Fund revenues for July totaled $117.4 million, an increase of 12.2 percent compared to last July. Strong motor vehicle usage and motor fuels tax receipts accounted for the majority of the increase in revenue.
“Motor fuels and motor vehicle usage tax receipts continue to perform well; in fact, better than expected after taking into account the record levels we saw last month,” she said.
The official revenue estimate for FY13 calls for revenue to increase 3.9 percent compared to FY12 actual receipts. Based on the first month’s receipts, revenues need to grow 3.2 percent for the rest of the fiscal year to meet budgeted levels.
Among the major Road Fund categories:
● Motor fuels tax receipts rose 9.6 percent.
● Motor vehicle usage tax increased 8.7 percent.
● License and privilege taxes grew 41.4 percent.