Ky. Tax Amnesty Gets Credit For Boosting Revenue

By ROGER ALFORD

FRANKFORT, Ky. (AP) â¿¿ An offer of tax amnesty in Kentucky was a factor in a significant rise in General Fund revenue in November, the state's budget chief said Monday.

Budget director Mary Lassiter said revenue rose 7.6 percent to $784.2 million, largely the result of 16.4 percent jump in property tax collections.

Individual income tax revenue increased by 10.7 percent and sales tax receipts rose by 4.6 percent for the month.

Lassiter credited a growing state economy and the amnesty offer, which allowed delinquent taxpayers to pay up without the fear of prosecution, for the General Fund growth.

"Early indications are that the amnesty initiative was successful and well-utilized," Lassiter said in a statement. "The total impact of tax amnesty won't be finalized until spring, as many taxpayers opted to pay their back taxes over several months."

Some 16,000 delinquent taxpayers had accepted the amnesty offer by the time it expired on Nov. 30.

Gov. Steve Beshear had said he hoped to generate some $55 million for the state through the offer. A similar offer a decade ago resulted in more than 23,000 taxpayers shelling out $40 million.

Monday's revenue report painted a bleak economic picture in Kentucky's mountain region, where most of the state's mining operations are located. Revenue from the state's so-called "coal severance tax" plummeted by 25.5 percent in November.

And cigarette tax revenue fell by 2.1 percent, which is believed to be largely the result of more Kentuckians kicking the smoking habit.

Road Fund receipts fell 7.4 percent to $114.4 million in November.

That decrease came despite a 6.4 percent increase in fuel tax revenue and an increase of less than 1 percent in motor vehicle taxes.

Revenue from license and privilege fees fell by 44.6 percent to $16.6 million.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

More from Stocks

How Small-Cap Stocks Can Protect Your Portfolio From a Trade War

How Small-Cap Stocks Can Protect Your Portfolio From a Trade War

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

3 Great Stock Market Sectors Millennials Should Invest In

3 Great Stock Market Sectors Millennials Should Invest In

Why Millennials Are Ditching Stocks for ETFs

Why Millennials Are Ditching Stocks for ETFs

Trump's 'Space Force' Could Launch a $1 Trillion Industry, Morgan Stanley Says

Trump's 'Space Force' Could Launch a $1 Trillion Industry, Morgan Stanley Says