(The Center Square) – April was a booming month for the Kentucky economy. State Budget Director John Hicks’ office reported Tuesday general fund receipts totaled $1.84 billion, a record amount for any month.
Much of the record was attributable to increases in individual and corporate income tax receipts. The state collected $967.5 million from individuals in April. That was up 80.7% from April 2021, with that stark increase due to the state delaying last year’s tax deadline to May.
Corporate and limited-liability taxes jumped 29.7% from last April to $247.4 million.
Last April, Kentucky received $1.36 million in payments to its general fund.
In a statement, Hicks said the record-setting figure shows Kentucky’s economy is robust.
“Even with the change in last year’s individual income tax filing deadline from April to May, revenues are exceeding expectations,” Hicks said. “These good results continue to be driven by increased income and profits in Kentucky’s economy.”
Another sign of a strong economy was the state’s sales and use tax receipts. The $477.6 million in revenue from those taxes was the third-best month ever for the state.
Through the first 10 months of the fiscal year, Kentucky has taken in $12.09 billion, up 16.4% from the first 10 months of the 2020-21 fiscal year.
For the year, individual income tax revenues are up 20.7% – or more than $840 million – to $4.9 billion. That’s nearly identical to the $4.86 billion that the state has received through sales and excise taxes.
Business taxes for the year are up by nearly $260 million – or 38.8% – to $926.9 million.
During this year’s General Assembly session, which concluded last month, Republican lawmakers passed a tax reform bill into law over Democratic Gov. Andy Beshear’s veto. The new law will gradually reduce the state’s individual income tax rate as Kentucky’s general funds reach certain thresholds. The new law also adjusted the state’s sales tax law to include the 6% fee on additional services.
While the general fund is showing strong growth, the state’s road fund reported an 8.7% drop in April to $148.5 million. Much of that was due to an $11.7 million decrease in motor vehicle usage taxes paid in the month.
Earlier this year, Kentucky lawmakers and Beshear agreed to freeze tax rates after many vehicle owners saw their vehicle property taxes rise sharply due to increased assessments. Refunds for those who paid the higher rates in January through March were expected to go out this spring.
A statement from the budget office said that road fund revenues need to grow by 2.2% over the final two months of the fiscal year for it to meet the state’s projections.
“The recently released interim revenue estimate calls for Road Fund revenues to increase 1.6% in FY22, which would result in a small revenue shortfall of $11.2 million,” the statement read.