While Kentucky’s General Fund receipts increased by 7 percent in July over the same time period last year, the state’s coal severance receipts continued to plummet.

According to data released Aug. 10 by the Kentucky Office of the State Budget Director, the state general fund receipts in July were $905.1 million, a 7 percent increase compared to the receipts in July 2019.

However, in several areas, revenues continued to decline, particularly in the area of coal severance. According to the OSBD data, in July, the state collected just over $3.2 million in coal severance taxes, a 37 percent decline from the $5.1 million seen in July 2019.

Another area of the state’s budget which saw a decline was in business taxes, which declined 41.2 percent. However, in a statement, the OSBD’s office said July is traditionally a low month of collections for business taxes.

Individual income tax receipts, according to the OSBD, rose 6.2 due to higher withholding and estimated tax payments. Sales tax revenues grew 12.3 percent, while the state’s road fund revenues totaled $137.5 million, representing a 7.2 percent increase.

State Budget Director John Hicks said in a statement he is pleased with July revenue collections, but noted that there is tremendous uncertainty going forward.

“The two largest revenue sources in July, the sales tax and individual income tax, were both aided by the $600 per week enhanced unemployment insurance benefits and the paycheck protection program,” Hicks said in the statement. “Both of those programs have now expired. The sustainability of these revenue increases in future months are very uncertain, depending on Congressional action to continue. As Kentucky continues the measured reopening of various sectors of the economy, the revenue pattern emerging from the July tax receipts report is seemingly a step ahead of progress on the economic front. We will continue to monitor the revenue patterns and economic trends, culminating in a report later this month that will contain the first updated view of the revenue projections for FY21.”