State tax receipts tepid in September, first quarter overall
10/10/2014 02:43 PM
Kentucky’s General Fund tax receipts rose just 0.1 percent this month compared to September last year, giving the state’s revenue stream 1.1 percent grown in the first quarter of fiscal year 2015, State Budget Director Jane Driskell announced Friday.
General Fund receipts totaled $920.6 million in September, up slightly from the $920.1 million in September 2013. Driskell said in the release that the General Fund’s receipts have slowed in the first three months of fiscal year 2015.
The fund’s receipts must grow 4.4 percent the rest of the year to hit the 3.6 percent revenue increase expected in this year’s budget, according to a news release from Driskell’s office.
“The two largest sources of revenue grew more strongly in line with broader economic indicators: the individual income tax which grew by 5.4 percent and the sales tax which grew by 3.4 percent,” Driskell said of first-quarter growth in a news release. “However, the remaining General Fund receipts fell by 9.3 percent during the first quarter, mitigating the momentum of the two largest sources of revenue. Weakness in the corporate income tax is still a concern.”
Among the sharpest declines in this year’s first quarter include corporate income taxes (down 25.7 percent), coal severance taxes (down 5 percent), property taxes (down 20 percent mainly because of timing issues) and cigarette taxes (down 3.5 percent), according to the news release.
In contrast, Kentucky’s Road Fund netted $138.3 million in September, up 0.8 percent compared to the same period last year.
Budget estimates call for a 0.9 percent decline in Road Fund receipts this fiscal year, meaning the fund’s revenues can drop 1.8 percent during the rest of the year and meet the estimate, according to the release. Motor fuels collections and license and privilege taxes grew 1.6 percent and 6.8 percent, respectively, in the first quarter of fiscal year 2015 while motor vehicle usage taxes dropped 0.5 percent, the release says.
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