Income tax revenue boosts state budget in October%)
FRANKFORT, Ky. (AP) — Income tax revenue rose in Kentucky in October while sales tax receipts declined sharply, sending mixed signals about economic recovery in the state.
Budget Director Mary Lassiter said Friday that General Fund revenue rose by 3.7 percent for the month, largely thanks to growth in individual and corporate income tax receipts. At the same time, Lassiter said she’s concerned about lackluster collections from the state sales tax and from the coal severance tax.
“Revenues remain on pace to meet budgeted levels, but we are closely watching several accounts, which have recently underperformed,” Lassiter said in a statement.
Individual income tax collections rose 3.7 percent for the month to nearly $303 million, and property tax collections skyrocketed by nearly 90 percent to $32.5 million.
Sales tax collections fell by 2.5 percent to $297 million. And coal severance tax revenue nosedived by 41 percent to $16.7 million, largely because coal sales declined in a slumping market.
Revenue from the state’s cigarette tax, which had been in a free fall, actually rose in October by 5.4 percent to just over $20 million. Cigarette tax revenue began a decline when Kentucky approved a 30-cent-per-pack tax increase some three years ago.