September 6, 2019
OKLAHOMA CITY (JR) – August gross receipts to the treasury increased $31.7 million, or 3.2%, to $1 billion from August 2018.
Receipts were curtailed by a slowing of oil and gas tax receipts and a slight drop in income tax collections, state Treasurer Randy McDaniel said.
Gross collections from the past 12 months totaled $13.7 billion, up $1.3 billion, or 10.8%, from $12.4 billion for the prior 12 months.
“Oklahoma’s economy is still expanding,” McDaniel said. “While we continue to see economic growth, it’s not as robust as in previous months.”
The growth rate in total August gross receipts is the lowest in more than two years and is driven by reduced collections from oil and gas production. In the past year, crude oil prices have fallen by almost 20% and rig counts are off by more than 40%.
Receipts from the gross production tax on oil and gas have dropped by more than a third since collections peaked in November 2018.
Gross production taxes on oil and natural gas generated $75.8 million in August, an increase of $3.9 million, or 5.5%, from August 2018. Compared to July 2019 reports, gross production collections are down by $4.9 million, or 6.1%.
A slight decline from the prior year in income tax collections is credited to non-economic reasons. Tax officials said there were fewer reporting deadlines for remittance of withholding taxes this August compared to last.
Individual income tax collections for the month totaled $259.2 million, down by $9.1 million, or 3.4%, from the prior year. Corporate collections are $6.8 million, a decrease of $2.3 million, or 25.2%. Wide variances in corporate receipts are not uncommon.
Gross income tax collections, a combination of individual and corporate income taxes, generated $266 million, a decrease of $11.4 million, or 4.1%, from the previous August.
Sales tax receipts rebounded slightly.
Sales tax collections in July totaled $419.5 million, an increase of $12.6 million, or 3.1%, from a year earlier. Use tax receipts, paid on out-of-state purchases including online sales, generated $64.1 million, an increase of $8.6 million, or 15.6%, over the year. Tax officials primarily credit increased compliance by online retailers for the use tax growth.
In August, the gross production incentive tax rate increase approved in House Bill 1010 during special session last year added $26.5 million to monthly collections, 2.6% of all August gross receipts.
This is the last month in which comparison to the same month of the prior year is impacted by any of the tax hikes in HB 1010.
Motor vehicle taxes produced $69.9 million in August, up by $1 million, or 1.5%, from the same month of 2018.
Other collections, consisting of about 60 different sources including taxes on fuel, tobacco, medical marijuana, and alcoholic beverages, produced $131.5 million during the month, up $16.9 million, or 14.7%, more than last August 2018.
The Office of the State Treasurer developed the monthly report on gross receipts to the treasury to provide a timely and broad view of the state’s macro economy.
It is released in conjunction with the General Revenue Fund allocation report from the Office of Management and Enterprise Services, which provides important information to state agencies for budgetary planning purposes.
The General Revenue Fund receives less than half of the state’s gross receipts, with the remainder paid in rebates and refunds, remitted to cities and counties, and apportioned to other state funds.