OKLAHOMA CITY – All signs point to ongoing expansion of the Oklahoma economy as July Gross Receipts to the Treasury of $1 billion and 12-month collections of $12.3 billion, both reached unprecedented high levels, State Treasurer Ken Miller announced Monday (August 6).
Miller said the July and 12-month numbers, which provide a general reflection of state economic activity, show growth of more than 10 percent each.
“Economic expansion is clearly driving the growth we see in Gross Receipts to the Treasury,” Miller said in his recurring monthly press release, sent to The City Sentinel and other news organizations.
“Continued improvement in state employment, notably in the oil fields, and positive numbers in other economic indicators are continued signs of ongoing growth.”
Increases were seen in each major revenue stream for both July and the past 12 months; employment is up by more than 32,000, including 5,200 news jobs in the oil patch, during the past year; and leading indicator indices show anticipated business expansion.
In July, income tax collections were up by 10 percent compared to July of last year, sales tax WAs up by almost 9 percent, and gross production WAs up by 64 percent.
For the 12-month period, income tax went up by 8.8 percent, sales tax by 11 percent, and gross production by 60 percent.
New revenue collections
Revenue from tax increases that took effect on July 1, including hikes in cigarette, fuel and gross production taxes, will not begin flowing to the tax commission until next month and, therefore, had no impact on July’s report.
Other new revenue that resulted from legislative changes made in 2017, including sales tax on vehicles and gross production incentive rate changes, has generated approximately $340 million during the past 12 months, according to the tax commission. Total growth in gross receipts is more than $1.2 billion during the same time period, which means the new revenue accounts for slightly more than one-fourth of the increase.
The Oklahoma Business Conditions Index has topped growth neutral for 12 consecutive months. The July index decreased slightly to 60.6, from 61.1 in June. Numbers above 50 indicate anticipated economic growth during the next three to six months.
Oklahoma’s seasonally adjusted unemployment rate of 3.9 percent in June is down by one-tenth of a percentage point from May, according to figures released by the Oklahoma Employment Security Commission. The U.S. jobless rate in June increased to 4 percent in June, up by two-tenths of a percentage point from the prior month.
July gross collections total $1 billion, up $100.6 million, or 10.8 percent, from July 2017.
Gross income tax collections, a combination of individual and corporate income taxes, generated $300.7 million, an increase of $27.4 million, or 10 percent, from the previous July.
Individual income tax collections for the month are $283.8 million, up by $25.2 million, or 9.7 percent, from the prior year. Corporate collections are $16.9 million, an increase of $2.2 million, or 15 percent.
Sales tax collections, including remittances on behalf of cities and counties, total $420.5 million in July. That is $34.1 million, or 8.8 percent, more than July 2017.
Gross production taxes on oil and natural gas generated $68.8 million in July, an increase of $26.9 million, or 64 percent, from last July. Compared to June reports, gross production collections are up by $704,356, or 1 percent.
Motor vehicle taxes produced $73 million, up by $5 million, or 7.4 percent, from the same month of 2017.
Other collections, consisting of about 60 different sources including use taxes, along with taxes on fuel, tobacco, and alcoholic beverages, produced $164.5 million during the month. That is $7.2 million, or 4.6 percent, more than last July.
Twelve month collections
Gross revenue totals $12.3 billion from the past 12 months. That is $1.2 billion, or 11.3 percent, more than collections from the previous 12 months.
Gross income taxes generated $4.3 billion for the period, reflecting an increase of $346.6 million, or 8.8 percent, from the prior 12 months.
Individual income tax collections total $3.8 billion, up by $277.3 million, or 7.8 percent, from the prior 12 months. Corporate collections are $473 million for the period, an increase of $69.3 million, or 17.2 percent, over the previous period.
Sales taxes for the 12 months generated $4.7 billion, an increase of $469.4million, or 11 percent, from the prior period.
Oil and gas gross production tax collections brought in $726.8 million during the 12 months, up by $272.7 million, or 60 percent, from the previous period.
Motor vehicle collections total $773.7 million for the period. This is an increase of $12.5 million, or 1.6 percent, from the trailing period.
Other sources generated $1.8 billion, up by $145.3 million, or 8.9 percent, from the previous year.
About Gross Receipts to the Treasury
The Office of the State Treasurer has issued the monthly Gross Receipts to the Treasury report since March 2011 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 placed into off-the-top earmarks to other state funds.