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Ky. General Fund records $1.84 billion in receipts in April for highest monthly amount ever recorded

The Office of State Budget Director (OSBD) reported Tuesday that April’s level of General Fund receipts of $1.84 billion is the highest monthly amount ever reported.

Receipts were up 34.9 percent over last April’s collections, bringing the year-to-date growth rate to 16.4 percent. Over 80 percent of the revenue increase over last April was from the individual income tax. Last year’s April collections were lower than normal last year due to a change in the filing deadline from April to May. The 16.4 percent year-to-date growth rate exceeds the 7.2 percent budgeted growth rate for the current fiscal year.

“General Fund revenues emphatically reached a new monthly record in April, once again demonstrating that the underlying Kentucky economy remains strong,” said State Budget Director John Hicks. “Salary and wage withholding receipts were up 23.1 percent in April, and major business tax receipts up 29.7 percent and are on pace to exceed the most ever in a fiscal year. Even with the change in last year’s individual income tax filing deadline from April to May, revenues are exceeding expectations. These good results continue to be driven by increased income and profits in Kentucky’s economy.”

Among the major accounts:

• Sales and use tax receipts fell 1.8 percent to $477.6 million, though April’s collections were the third-highest month ever. Year-to-date collections have grown 11.6 percent.

• Corporation income and limited liability entity tax (LLET) receipts continued to be strong, increasing 29.7 percent to $247.4 million. Revenues through the first ten months have grown 38.8 percent.

• Individual income tax collections grew 80.7 percent, or $432.2 million, in April as withholding, estimated payments and payments with tax returns all saw significant increases. Through ten months, collections have increased 20.7 percent.

• Property tax collections fell 15.1 percent or $4.6 million for the month. Receipts are up 3.3 percent year-to-date.

• Cigarette tax receipts decreased 12.2 percent in April and have fallen 7.6 percent year-to-date.

• Coal severance tax receipts increased for the fifth consecutive month, rising 27.0 percent to $5.7 million. Revenues have grown 17.4 percent year-to-date.

Road Fund receipts fell 8.7 percent in April as prior year receipts were inflated due to timing issues. Collections for the month were $148.5 million. Year-to-date growth in collections now stands at 2.3 percent. Based on year-to-date tax collections, revenues must increase 2.2 percent for the remainder of the year to meet the estimate. The recently released interim revenue estimate calls for Road Fund revenues to increase 1.6 percent in FY22 which would result in a small revenue shortfall of $11.2 million.

Among the accounts, motor fuel revenue rose 2.4 percent in April, and are up 4.8 percent year-to-date. Motor vehicle usage tax collections fell 18.1 percent, but are still on pace to be at least the second-best fiscal year ever, and license and privilege receipts were down 4.1 percent.

Office of the State Budget Director

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