Staying in leads to rise in Kentucky's wine, distilled spirit tax revenue

To get through the state's stay-at-home order, Kentuckians spent substantially more on alcohol and wine in April helping to give a much-needed boast to the state's general fund.

Revenue from April wine consumption taxes increased 32.1 percent while the increase from distilled spirits was 18.6 percent, according to the Office of State Budget Director.

Overall, the state's general fund receipts took a beating in April dropping by a third or $432.9 million in April compared to a year ago.

The impacts from COVID-19 and delaying income tax filing deadlines combined to create the drop, according to Budget Director John Hicks.

"The economy has been hit hard by policies necessary to limit the spread of the virus and to save lives," Hicks said. "Looking ahead to the last two months of the fiscal year, the economic consequences of job losses, impacts on business, and significant curtailment of consumer activity are expected to continue."

In the bleak assessment of April revenue, money coming in from increased wine and distilled consumption broke from the norm by being one of the few areas where tax revenue increased.

Revenue from beer consumption actually decreased 6.6 percent in April compared to April 2019, when bars and restaurants were open and there was a full slate of sporting activities.