The state budget director’s office says end of fiscal year tax receipts show some growth in Kentucky’s economy.
Greg Harkenrider, deputy director in the Governor’s Office for Economic Analysis, says general fund receipts totaled 3.4 percent more than last year.
Still, the veteran budget official says that’s not, quote, “gigantic growth.” “In the 1990’s and some of the years in the early 2000’s after the recession, it would not be unusual to see five or six percent growth in sales tax and four plus percent growth in withholding,” said Harkenrider.
Harkenrider says the just released report shows sales tax receipts grew 3.5 percent in fiscal year 2018. “We think, all in, for fiscal 19 the sales tax should go up $208 million. That’s not due to economic growth. That’s due to the tax law changes,” explained Harkenrider.
Cigarette tax receipts declined by more than 4 percent in fiscal year 2018. And although the number of smokers is expected to continue to decline, the sale tax total is expected to rise. Harkenrider says the 50 cent increase in the cigarette tax will likely mean more than a hundred million dollar boost in revenues this year.