State Budget Director John Chilton said Kentucky's tax collections in August increased nearly $30 million from last year.
Chilton announced Tuesday that state General Fund receipts for August totaled $787.2 million, a 3.6% increase compared with receipts in August 2018 -- $759.9 million.
According to Chilton, General Fund revenues have increased by 2.7% this fiscal year. He noted that the rate of growth of General Fund receipts has moderated from FY19 levels.
"We saw rapid growth in General Fund receipts last fiscal year. Some of the increase was due to a solid economy, but the tax package passed by the General Assembly in the 2018 legislative session also played a large role in the rise in collections," Chilton said in a release. "In the current fiscal year, the effects of the 2018 tax law changes have mostly worked their way through the system, so we expect to see lower growth in accounts such as the cigarette taxes. On the other hand, collections from the income taxes should begin to stabilize and grow."
The official revenue estimate for FY20 calls for revenue to increase 0.6% compared to FY19 actual receipts. Based on August results, Chilton said General Fund revenues need to grow 0.3% for the remaining 10 months of the fiscal year to meet the official estimate.
Individual income taxes rose 6.4% on the strength of withholding collections while sales tax revenues grew 6.4%.
Cigarette taxes fell 0.4% and property taxes declined 12.2%. Chilton's office said large swings in property tax receipts are not unusual early in a fiscal year.
Road Fund revenues for August totaled $142.3 million, a 0.7% decrease compared with last August, according to Chilton's office.
The official Road Fund revenue estimate for FY20 calls for a decline of 3.6% compared to FY19 actual receipts. Based on year-to-date collections, revenues can fall 4.3% for the rest of the fiscal year and still meet budgeted levels
Jonathan Greene is the editor of The Register; follow him on Twitter @jgreeneRR.