OKLAHOMA CITY – Oklahoma’s economy continues to expand despite inflationary pressure, State Treasurer Randy McDaniel said last week.
McDaniel said gross tax receipts to the state treasury “point to accelerating economic expansion” and March receipts set a record at $1.38 billion, a 23 percent increase over the same month last year.
“The level of growth we’ve seen recently shows the state economy is hitting on all cylinders, even when accounting for inflationary pressure,” McDaniel said in a media statement. “With unemployment at a record low, more Oklahomans are finding work, which is helping deliver exceptional economic results.”
Tax data shows that monthly gross collections were up by $257.6 million, or 22.9 percent. Gross income tax collections, a combination of individual and corporate income taxes, generated $490.1 million, up by $78.1 million, or 19 percent. Individual income tax collections stood at $420.1 million, an increase of $54.5 million, or 14.9 percent.
The state’s energy sector continued to push revenues upward.
McDaniel said gross production collections in March set a record monthly high, generating $165.3 million, an increase of 82 percent from March 2021.
However, oil and gas drilling and oil field employment remain below the record highs set in the past decade.
In addition to other areas, the state’s combined sales and use tax collections – including remittances on behalf of cities and counties – totaled $526.2 million, an increase of $103.2 million, or 24.4 percent.
Use tax receipts, which are collected on out-of-state purchases including internet-based sales, generated $75.6 million, an increase of $16.3 million, or 27.4 percent.
In addition to the strong economy, McDaniel said the state’s unemployment rate was well below the national average. February’s rate was reported as 2.6 percent by the U.S. Bureau of Labor Statistics, a one-tenth of a percentage point decrease from January.
The U.S. jobless rate was listed as 3.8 percent in February, down from 4 percent in January.
Still, not everything was bright.
McDaniel said the state’s annual inflation rate hit 7.9 percent in February, up four-tenths of a percentage point from January. He said that increase was the highest rate since January 1982.
Records from the Treasurer’s Office show that combined energy prices are up 25.6 percent, while the cost of food for home consumption rose at an annual rate of 8.6 percent.
Sales for medical marijuana dropped to $5.2 million for the month, a decrease of $756,564 from March 2021.