State Budget Director John Hicks on Monday reported General Fund receipts in September were 1.7 percent less than September 2021, with revenues of $1,480.3 million but are the third-highest revenue month ever.
Excluding a one-time $225 million legal settlement from last September, General Fund receipts grew by 15.6 percent. General Fund receipts in fiscal year 2023 have grown 3.8 percent, or 11.1 percent growth after excluding the settlement money from the 2021 base. Based on September’s results, General Fund revenues can decline 9.5 percent for the remainder of the fiscal year and still meet the official estimate.
Hicks said collections increased in all the major tax accounts.
“Tax revenue performance continued to be strong in September,” he said. “Major business taxes rose 33.2 percent, over and above the 76.0 percent growth from September 2021. Individual income tax receipts grew 9.5 percent as estimated payments for the individual income tax grew 13.9 percent and withholding revenues were 8.0 percent higher.
“Estimated payments are forward looking, meaning individuals and corporations are projecting that their income tax liabilities will be higher during the 2023 tax filing season. Finally, sales and use tax receipts continue surging by double-digit rates of growth, posting receipts 13.6 percent higher than September 2021.”
Among the major accounts:
• Individual income taxes grew 9.5 percent in September as withholding, net returns and declarations all increased. Year-to-date collections in this account have grown 8.4 percent.
• Sales tax revenues grew 13.6 percent in September and have increased 12.8 percent in the first three months of the year.
• Corporation income and LLET tax receipts rose 33.2 percent for the month and are up 16.0 percent in the first quarter of the fiscal year.
• Cigarette taxes fell 7.2 percent in September and are down 3.4 percent for the first three months of the fiscal year.
• Property taxes grew 9.7 percent in September and have increased 7.8 percent for the year.
• Coal severance tax receipts more than doubled compared to last September, increasing 101.7 percent to $8.9 million. Year-to-date collections are up 72.2 percent.
• Lottery revenues rose 8.0 percent in September and are up 7.9 percent for the year.
• Road Fund receipts grew 1.2 percent in September with collections of $139.3 million while year-to-date collections have declined 0.3 percent.
The official Road Fund revenue estimate calls for a 2.7 percent increase in receipts for the entire fiscal year. Based on year-to-date collections, revenues must increase 3.7 percent for the remainder of the fiscal year to meet the estimate.
Among the accounts:
• Motor fuels receipts fell 0.5 percent in September as high gas prices muted demand. Collections in this account are down 0.7 percent for the year.
• Motor vehicle usage collections rose 3.4 percent for the month. Year-to-date collections are up 2.2 percent.
• License and privilege taxes grew 8.9 percent in September. For the first three months of the fiscal year, receipts have decreased 3.2 percent.
• Nontax receipts fell 35.4 percent in September due to a decline in investment income. For the year, collections are down 24.8 percent.
The complete report can be accessed at www.osbd.ky.gov.
Office of State Budget Director
