OKLAHOMA CITY – Gross receipts to the state Treasury jumped by more than 38% in April, driven by oil and gas production tax collections along with increases in sales and income tax payments, State Treasurer Randy McDaniel announced.
Collections from all sources in April totaled $1.49 billion, up by $413.2 million from April 2020. Some increase was expected because last April was the first full month of the pandemic and receipts were negatively impacted by a delay in the income tax filing deadline.
Even so, the increase was not from income taxes only. Every major revenue stream rose by double-digit percentages, including a 73% boost in gross production taxes on oil and natural gas and a 32% surge in sales and use tax receipts. Combined individual and corporate income taxes grew by 36.4% for the month.
“Oklahoma’s economy was hitting on all cylinders in April, especially compared to where we were a year ago,” McDaniel said. “Consumer confidence is on the rise, reflecting growing optimism about the economy.”
The Oklahoma Business Conditions Index in April remained above growth neutral for a fifth consecutive month. The April index was set at 70.9, its highest level in 10 years. Numbers above 50 indicate economic expansion is expected during the next three to six months.
April’s gross production tax generated $133.7 million, the highest monthly total in more than a decade. Collections for the month reflect oil field production during February when natural gas prices spiked during the record cold snap and crude oil prices were on the rise.
Sales tax receipts not only exceeded collections from a year ago but also topped those from April of 2019. Much of the increase is attributed to expenditure of federal stimulus payments, which pumped billions of dollars into the Oklahoma economy.
Combined gross receipts from the past 12 months of $13.56 billion are above collections from the previous 12 months by $342.8 million. The growth ends a one-year contraction in 12-month receipts.
The March unemployment rate in Oklahoma was reported as 4.2%, according to the U.S. Bureau of Labor Statistics. The state’s jobless rate was down by two-tenths of a percentage point from February but up from 3.2% in March 2020. The U.S. unemployment rate in March was set at 6%.