3:24pm

Tue July 12, 2011
Statehouse News

Tax Receipts Up, Bodes well for Employment

For the first time in three years, Kentucky’s general fund tax receipts have increased.  The fiscal year, which ended last month, saw a six point five percent increase...that's the highest growth rate since 2006.  State budget director Mary Lassiter says it’s a sign of economic recovery.

“We’re seeing good solid growth in the income taxes, the sale taxes and business taxes; all reflecting that businesses are starting to recover from the economy and consumers have money to spend,” said Lassiter.

Lassiter says receipts exceeded estimates by 166 million dollars.  Lassiter says this signals a good trend for the business sector.

“And when they get to the point that they’re back in the black, then they are willing to make investments in their futures and that means hiring people,” added Lassiter.

Lassiter admits there are ongoing worries about low unemployment in many Kentucky’s counties.  Individual income tax receipts increased by more than eight percent compared to a year ago.  Cigarette tax receipts, by contrast, fell by five point seven percent.