Kentucky’s general fund collections in April grew 7.9% to $844.2 million, an increase of $62.1 million over April 2010.
Receipts have grown by 5.6% for the first 10 months of the fiscal year, while the state budget was based on revenue growth of 4.5%. The rebound is further evidence that the state’s economy is growing, according to budget director Mary Lassiter, who cited improvements in major tax categories.
Economists predict that collections will exceed the official estimate by $95.7 million this year. However, Lassiter said $31.1 million in severance collections will be diverted to counties negatively affected by the coal industry pursuant to a formula, and weather-related flooding and storm effects will require increased spending. Road fund receipts for April totaled $116.1 million, a 7.6% increase over the same month a year ago. Year-to-date road receipts have increased 11.8% over last year.
Among other major categories, sales and use tax receipts increased 3.6% for the month and 4.3% for the year; corporation income tax receipts grew 56% for April and 21.6% for the year; and individual income tax collections rose 8.7% for the month and 6.5% year-to-date.
Meanwhile, property tax collections decreased 7.5% in April and are down 0.8% year-to-date; cigarette taxes fell 6.5% in April and 6% year-to-date; and coal severance tax receipts fell 11.3% in April, though they are up 8% for the year.