OKLAHOMA CITY — Oklahoma’s May tax receipts dropped by more than $146 million from the high set in March and more than $15 million from a year ago, a report from the State Treasurer’s office said.
Detailed in the June Economic Report, tax records show that tax revenue for the 12 months’ total in May was $146 million less than the state’s March high of $17.64 billion.
State Treasurer Todd Russ said tax receipts continue to taper off as energy prices decline. Revenue from oil and gas production dropped by $68 million – almost 42% – from May of 2022.
Still, some areas of the economy showed growth.
Gross income tax collections – a combination of individual and corporate returns – were $391.1 million, up by 9.6% or $34.1 million while combined sales and use tax collections increased by $11.8 million to $577.4 million.
Additionally, motor vehicle taxes produced $84.9 million – a 12.9% increase – from the same period in 2022.
The treasurer’s report follows a study released in May by the American Petroleum Institute that places Oklahoma among the top three states in the country with the biggest impact from the oil and gas industry.
API’s study shows that between 11% and 15% of the state’s workforce is directly or indirectly supported by the oil and gas industry and that more than 26% of the state’s gross domestic product stems from the oil and gas industry.
“Natural gas and oil delivers growing economic contributions to America that were nearly equivalent to Canada’s annual GDP last year. From Oklahoma to California, America’s natural gas and oil workforce is the backbone of communities, supporting nearly 11 million careers throughout the energy supply chain,” API President and CEO Mike Sommers wrote in a media statement accompanying the study. “America’s economic outlook is brighter when we are leading the world in energy production and this analysis serves as a reminder that we need policies and regulations that encourage investment and enable development.”
While the state’s economy might have slowed some, state business leaders remain optimistic about Oklahoma’s economic future. A report produced by the State Chamber of Commerce painted a positive image of the state’s economy.
“This latest poll reflects a positive state business outlook relative to the national economy while offering us a roadmap for continuous improvement,” Mark Funke, president and CEO, Oklahoma Business Roundtable, wrote in a media statement.
Data from the poll shows that 70% of state business leaders believe the state’s economy is going in the right direction. That poll also showed that 83% of the state’s Business Roundtable and State Chamber of Commerce members share the same view.
The poll also showed that more than 44% of the business leaders surveyed expected to expand their workforce.