OKLAHOMA CITY – This month’s distribution of sales and use tax collections by the Oklahoma Tax Commission showed the first indications of the slowdown in the economy from the energy industry slump and the coronavirus pandemic.
The May disbursement of $146 million in sales tax receipts returned to cities and towns was three-quarters of a million dollars less than the April disbursement, and reflected a $14 million decrease from a year ago.
Use tax collections statewide, however, were up $1.4 million from a year ago and almost $1.5 million from April. A use tax is a sales tax on purchases made outside one’s state of residence for taxable items that will be used, stored or consumed in one’s state of residence and on which no tax was collected in the state of purchase. The use tax is typically collected from online purchases.
Lawton experienced a $361,000 decline in sales taxes, but a $67,700 increase in use taxes, from May 2019. Duncan, where Halliburton has had two major layoffs in recent weeks, received $166,345 less sales tax this month than it did last May.
Altus realized a year-over-year sales tax gain of $100,000, and use tax collections were almost more than $12,000 greater.
Cache raked in 41.5% more in use tax receipts this month than it did a year ago, and Granite’s use tax receipts soared by 107% from last year. Elgin had a sales tax increase of $32,000 (29%), Rush Springs’ allocation grew by nearly $6,400 and Mountain View had a $5,645 increase. Tipton’s sales taxes slipped by more than $1,700 (23%), and Hollister’s sales tax receipts fell by 60%.
Manitou received less than $1,000 in sales taxes but more than $13,000 from use taxes. Central High and Hol- lister, too, got more from use taxes than from sales taxes.
Comanche County’s sales tax disbursement was $20,342 lower than a year ago, but Jefferson County’s was $19,000 higher, and Jackson County’s sales tax disbursement was $14,000 higher than last May’s. Stephens County had a $50,000 (13%) decline, but Tillman County’s sales tax disbursement increased $10,000 (20%) from a year ago.
Tillman County’s use tax check soared 152% from a year ago, Harmon County’s increased 73%, and Jefferson County’s grew by 60% compared to last May.
The May distribution of sales tax collections by the Oklahoma Tax Commission primarily represents local tax receipts from business transacted in March. Companies that remit more than $2,500 monthly in sales tax receipts are required to file and pay electronically. The monies they reported during this period represent sales from March 16 to 31 and estimated sales from April 1 to April 15.