OKLAHOMA CITY – Oklahoma’s economy is sound but growing slow.
Gross receipts during all of 2019 are 5.7% more than during 2018, but the growth rate is down from 13.2% in 2018, said State Treasurer Randy McDaniel.
The Office of the State Treasurer developed the monthly Gross Receipts to the Treasury report in order to provide a timely and broad view of the state’s economy.
The collection on 60 different sources including taxes on fuel, tobacco, medical marijuana, and alcoholic beverages produced $123.8 million during December, $4.3 million, or 3.6%, more than a year ago.
“Recent economic trends appear to be primarily related to low oil and gas prices,” McDaniel said. “We are seeing both a direct and spillover effect on some tax collections due to suppressed energy prices.”
Tax collections on oil and gas production have been significantly below the prior year for four consecutive months. Sales tax receipts have shown contraction for six of the past seven months. In December, use tax collections on out-of-state purchases dropped below those of the prior year for the first time in more than three years.
Drilling activity has plunged by more than 60% in the past year and natural gas prices are down by almost 30% and oil prices are off by almost 25% since this time last year, McDaniel said.
Gross revenue totals $13.71 billion from calendar year 2019. That is $743.9 million, or 5.7%, above collections from calendar year 2018.
Other collections:
• Gross income taxes generated $4.75 billion for the year, an increase of $354.7 million, or 8.1%;
• Individual income tax collections total $4.18 billion, up by $281 million, or 7.2%;
• Corporate collections are $573.5 million for the period, an increase of $73.7 million, or 14.8%;
• Combined sales and use taxes for the year generated $5.58 billion, an increase of $149.6 million, or 2.8%;
• Grosssalestaxreceipts total $4.87 billion, up by $27.3 million, or 0.6%;
• Use tax collections generated $715 million, an increase of $122.2 million, or 20.6%;
• Oil and gas gross production tax collections brought in $1.03 billion; up by $38 million, or 3.8%;
• Motor vehicle collections total $794.5 million for the year, an increase of $10.2 million, or 1.3%;
• Other sources generated $1.56 billion, up by $191.4 million, or 14%.
• Gross income tax collections, a combination of individual and corporate income taxes, generated $428 million, an increase of $77.7 million, or 22.2%;
• Individual income tax collections for the month are $318.8 million, up by $25.3 million, or 8.6%;
• Corporate collections are $109.2 million, an increase of $52.4 million, or 92.3%;
• Motor vehicle taxes produced $70 million, up by $8.6 million, or 14%.