FRANKFORT, Ky. (WTVQ)- Over February, the state’s General Fund receipts rose, but the Road Fund receipts declined, according to the Office of State Budget Director.
The Office reports General Fund receipts rose 4.6% compared to February 2020. That’s an increase of $40.2 million. Total revenues for February were $924.2 million, compared to $884 million during February 2020. Overall, receipts have increased 5.6% for the first eight months of the fiscal year.
According to State Budget Director John Hicks, Road Fund receipts for February were $125.8 million, which is a 2.0% decrease since February 2020. Year-to-date, receipts for fiscal year 21 have increased .3%
“The $600 stimulus check received in January by many Kentucky households clearly resulted in higher consumer spending. Even with that, the sales tax has grown 7.0 percent in the last three months and by 6.5 percent year-to-date. Total revenue growth through the first eight months of FY21 for the General Fund has been 5.6 percent over the prior year, as all of the major taxes are outpacing the revenue estimate assumptions. With the expected new round of federal fiscal stimulus, as well as the revenue growth to date, it is highly likely that there will be a revenue surplus this fiscal year,” Hicks said.
“Among the major accounts:
- Sales and use tax receipts increased 14.4 percent for the month and have grown 6.5 percent year-to-date.
- Combined corporation income and LLET tax receipts were $12.1 million more than collected in February 2020. A large increase in corporate declarations offset a decrease in net returns. For the year, these two revenue sources have increased 26.3 percent.
- Individual income tax collections fell 0.4 percent in February. Collections have grown 4.0 percent though the first eight months of the year. Net returns and fiduciary collections increased for the month which offset declines in withholding and estimated payments.
- Property tax collections grew 4.5 percent for the month and have increased 5.5 percent year-to-date.
- Cigarette tax receipts rose 16.0 percent for the month, partially offsetting a 20.3 percent decline in January. Through the first eight months of FY21, cigarette tax receipts have decreased 0.1 percent.
- Coal severance tax receipts decreased 13.6 percent in February and are down 11.0 percent through the first eight months of the fiscal year.
Road Fund receipts fell 2.0 percent in February as collections totaled $125.8 million. Total revenue has grown 0.3 percent through the first eight months of FY21. Motor fuels collections declined for the 11th consecutive month while motor vehicle usage tax receipts saw a small uptick. The official Road Fund revenue estimate call for revenues to increase 5.8 percent for the fiscal year. Based on year-to-date tax collections, revenues must increase 18.3 percent for the remainder of the year to meet the official estimate. Last year, Road Fund revenues fell 17.1 percent from March through June. Among the accounts, motor fuels fell 4.0 percent. Motor vehicle usage revenue grew 1.3 percent, and license and privilege receipts rose 4.3 percent. ”