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State government revenue falls 2.3 percent in July

FRANKFORT, Ky. (AP) - Kentucky's general government revenue was down 2.3 percent in July from a year ago, largely because of drops in receipts from the state's sales and income taxes.

Budget Director Mary Lassiter released the latest tax collection figures on Friday.

Lassiter said she expects the state to meet projections of modest revenue growth over the next year, despite declines in general fund revenue over three of the past four months.

The biggest July losses were in individual income tax receipts, which were down 4.3 percent. Sales tax receipts dropped by 5.6 percent.

Receipts from the state's cigarette tax fell by 17 percent. And coal severance tax receipts plummeted 18.7 percent.

Lassiter reported modest increases in collections from corporate income taxes, property taxes and lottery revenue.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

Kentucky's general government revenue fell in July, largely because the state's sales and income taxes didn't produce hoped for receipts, the state's budget director said Friday.

Budget Director Mary Lassiter said she expects the state to meet projections of modest revenue growth over the next year, despite declines in general fund revenue over three of the past four months.

"Other states are experiencing similar patterns of increased monthly volatility in revenue collections as well," she said.

Lassiter blamed the revenue fluctuations on global economic conditions.

The biggest July losses were in individual income tax receipts, which were down 4.3 percent. Sales tax receipts dropped by 5.6 percent.

Coal severance tax receipts plummeted 18.7 percent. And natural gas severance tax revenue was down 19.1 percent.

The state also took in less money on sin taxes in July. Receipts from the state's cigarette tax fell by 17 percent, while the beer consumption tax generated 3.7 percent less. Revenue from the distilled spirits consumption tax fell by 12.5 percent.

Lassiter reported increases in collections from the state's corporate income tax, property tax and lottery revenue.

A team of Kentucky economists predicted that general fund revenue will rise by 2.4 percent during this fiscal year. To meet that prediction, revenue will have to increase 2.8 percent over the next 11 months.

Lassiter reported a 12.2 percent jump in the state's Road Fund receipts in July, largely due to increases in revenue from the fuel tax and motor vehicle usage tax.

"Motor fuels and motor vehicle usage tax receipts continue to perform well," she said. "In fact, better than expected after taking into account the record levels we saw last month."

Fuel tax receipts grew by 9.6 percent. Vehicle usage tax rose 8.7 percent. And the license and privilege taxes grew 41.4 percent.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


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