State revenue falls in general fund, increases in road fund – Winchester Sun

The State Department’s budget director reported Monday that general fund receipts in February were down 6.5% compared to February of last year, but the highway fund increased 5.2% compared to February 2023.

General fund collections for the month were $1,007.6 million. In February, sales, gross income, property taxes, and miscellaneous taxes increased slightly, but personal taxes and business taxes decreased significantly. In the first eight months of the fiscal year 24 income he increased by 3.0%. The General Fund’s official revenue projections call for fiscal year revenues to increase by 2.7 percent. Based on year-to-date tax collections, revenue would need to increase by 2.1% for the remainder of the year to meet official estimates.

State Budget Director John Hicks said the year-over-year decline was concentrated in personal income taxes due to lower tax rates and timing issues.

“The income tax rate in February 2024 was 4.0 percent compared to 4.5 percent in February 2023. The other part of the decline is that some receipts normally received in February will be This is because they were received in late January.”In January and February, withholdings decreased by a combined 9.0%, while the personal income tax rate decreased by 11.1%. Wages and salary income continue to increase in Kentucky as wage growth continues to outpace personal income tax rate reductions. ”

Highway fund receipts increased 5.2% in February, bringing total collections to $140 million. Total revenue increased by 6.5% in the first eight months of fiscal year 2024. Motor fuel collections increased by 14.4% and motor vehicle use tax collections increased by 13.0%. License and registration collections fell slightly due to delays in deposits due to updates to Kentucky’s vehicle information system. The Roads Fund’s official revenue forecast predicts a 7.3% increase in revenue for the financial year. Based on year-to-date tax collections, revenue would need to increase by 8.8% for the remainder of the year to meet official estimates.