Kentucky April receipts down from 2022, but still second-best ever

Thursday, May 11, 2023 at 9:07 AM

By KENTUCKY TODAY -TOM LATEK @Wikicountry

On target to meet the official revenue estimate

capitol

(Story Courtesy of Kentucky Today)

FRANKFORT, Ky. (KT) – The Office of State Budget Director reported Wednesday that April’s General Fund receipts were the second-highest monthly amount ever, although they were lower than last year.

They were 2.7% lower than April 2022, due to the reduction in the individual income tax rate but remain on target to meet the official revenue estimate for the fiscal year that ends June 30, 2023. Collections for the month of April were $1,788.7 million, so receipts have now grown 4.5% for the first 10 months of FY23.

The official revenue estimate, which was modified due to actions taken by the 2023 General Assembly, calls for revenue growth of 3.3%. To meet the official revenue estimate, receipts can decline 2.1% over the last two months of the fiscal year.

State Budget Director John Hicks noted that April’s revenue collections put Kentucky squarely on pace to hit the official revenue estimate for FY23.

“The estimate calls for a $1.4 billion revenue surplus this year and we are on track to meet it,” he said. “Despite the small overall decline of 2.7%, sales and business tax receipts were markedly higher. Excluding the individual income tax, the remaining revenue categories combined to increase 10.9%. April’s decline in the individual income tax was impacted by the recent 10% tax rate reduction from 5 to 4.5% and came on the heels of an 80.7% increase last April, so a pullback was expected.”

Road Fund receipts grew 3.3%, or $4.8 million in April, as motor fuels collections were one of the few accounts to increase, rising 7.7% in April. Collections for the month were $153.3 million. Year-to-date collection now shows a 4.0% jump o er a year ago. The official Road Fund revenue estimate calls for revenues to increase 2.7% for the fiscal year, so based on year-to-date tax collections, revenues can decline 3.2% for the remainder of the year and still meet the estimate.