Oklahoma economic conditions for August 2019

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OKLAHOMA CITY - Economic growth in Oklahoma continued again for the month Production tax, 1.5% increase in Motor Vehicle tax, and 14.7% increase in other revenue sources.

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  •  Economic growth in Oklahoma August 2019
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OKLAHOMA CITY - Economic growth in Oklahoma continued again for the month of August 2019 with gross receipts to the Treasury up 3.2% over August 2018, according to the Oklahoma Economic Report for September 2019, released by the Oklahoma Treasurer’s Office.

While total growth was up, the gains were modest compared to recent months.

Income tax revenue was down 4.1% year-over-year, but this loss was covered by a 4.6% increase in Sales and Use Tax, 5.5% increase in Gross Production tax, 1.5% increase in Motor Vehicle tax, and 14.7% increase in other revenue sources.

Gross receipts overall were up $31.7 million year-over-year, at $1.03 billion and totaled $13.7 billion over the last 12 months, up to $1.3 billion over the same period last August.

GROWTH RATE IS LOWEST IN MORE THAN TWO YEARS

While growth is good, the growth rate is the lowest it has been in more than two years, which is being driven by reduced collection from oil and gas production.

Crude Oil prices continue to fall and are down 20% with rig counts down by more than 40%. The revenues from Gross Production tax on oil and gas are down over one- third since November 2018.

One interesting revenue

source to note is that of the tax on the sale of medical marijuana in the state of Oklahoma.

Revenues through August 2019 topped $4.6 million, which was more than twice that of July, with revenues expected to top $7.4 million in September.

OTHER COLLECTIONS

Overall other collections, which include over 60 sources from fuel, tobacco, medical marijuana, and alcoholic beverages were up 14.7% or $16.9 million over last August.

Despite the growth rate slowing, the state’s unemployment rate continues to stay low at 3.2%.

The national unemployment rate held firm at 3.7% as well in July 2019.

Oklahoma has enjoyed an unemployment rate of less than 3.4% for over a year.