State receipts have nearly 16% increase in first six months

Thursday, January 13, 2022 at 8:55 AM

By KT

Fourth consecutive month in which collections have exceeded $1 billion.

capitol

FRANKFORT, Ky. (KT) – The Office of State Budget Director has reported that December’s General Fund receipts in Kentucky totaled $1,390.2 million, a rise of 10.4% over a year ago, and the fourth consecutive month in which collections have exceeded $1 billion.

Receipts have increased 15.9% for the first six months of the fiscal year that ends June 30, 2022, while the official revenue forecast, which was revised by the Consensus Forecasting Group, or CFG, last month, calls for 7.5% revenue growth. The latest numbers mean revenues can remain flat for the last six months of the fiscal year and still meet the estimate.

State Budget Director John Hicks noted that the 10.4% increase follows the recent trend of strong revenue performance that corresponds to the solid economy in Kentucky. “December’s growth rate marks the fifth straight month of double digit percentage growth. During that span, the three major revenue sources have all reflected the favorable underlying economic conditions.”

Sales tax receipts were up 19.9% in December and 13.3% year-to-date, highlighting continued strength in consumer spending. The withholding component of the individual income tax came in 6.7% more than December 2020 with year-to-date growth of 7.7%, reflecting growth in Kentucky wages. Major business taxes grew 23.2% in December and stand 44.9% higher through the first half of the fiscal year.

Road Fund receipts for December totaled $125.4 million, up 3.6% from December 2020 levels. Year-to-date receipts have risen 3.2%. Road Fund revenue growth has been consistent through the first half of the fiscal year, increasing 3.5% in the first quarter and 2.8% in the second. The official revised revenue estimate calls for a 2.3% increase for the fiscal year, so receipts must grow 1.5% over the remainder of the fiscal year to meet the official revenue estimate.

Among the accounts, motor fuels receipts grew 11.4% in December, and are up 4.8% for the first six months. Motor vehicle usage revenue rose 3.1% in December and has increased 3.1% year-to-date. License and privilege receipts fell 37.5% for the month and are down 0.7% for the year.