OKLAHOMA CITY (OBV) – Gross receipts submitted to the Oklahoma State Treasurer reached a new high over the past 12 months, with a nearly $2 billion rise from the previous 12 months, but rising interest rates are causing concern over future economic growth.
State Treasurer Todd Russ issued a report this week stating that 12-month gross receipts through January are $17.48 billion, a $1.98 billion (12.8 percent) increase from the prior twelve months.
The treasurer’s total collections of $1.59 billion in January is $40.5 million (2.7 percent) more than last January’s collection.
“The Gross Receipts report shows noteworthy improvement,” said Treasurer Russ. “Even so, higher interest rates are causing a slowdown in housing demand and other economic activity.”
All major revenue streams in Oklahoma reflected growth over the past year, with sales and use tax collections growing at 8.6 percent, exceeding the 6.5 percent inflation rate. Income tax receipts increased by 13.1 percent, according to a Treasurer’s Office news release.
The monthly Oklahoma Business Conditions Index had a slight rise in January, increasing from 40.2 in December to 43.3, showing some economic improvement. However, an index number under 50 shows potential contraction over the next three to six months.
The Treasurer’s Office provided the following breakdown of Oklahoma’s January collections and 12-month collections:
January 2023 collections compared to gross receipts from January 2022 show:
- Total monthly gross collections are $1.55 billion, up by $40.5 million, or 2.7 percent.
- Gross income tax collections, a combination of individual and corporate income taxes, generated $550.4 million, down by $3.1 million, or 0.6 percent.
- Individual income tax collections are $482.2 million, an increase of $35.9 million, or 8.0 percent.
- Corporate collections are $68.2 million, down by $38.9 million, or 36.4 percent.
- Combined sales and use tax collections, including remittances on behalf of cities and counties, total $629.4 million – up by $32.3 million – or 5.4 percent.
- Sales tax collections total $515.2 million, an increase of $21.9 million, or 4.4 percent.
- Use tax receipts, collected on out-of-state purchases including internet sales, generated $114.2 million, an increase of $10.3 million, or 9.9 percent.
- Gross production taxes on oil and natural gas total $153.1 million, an increase of $9.6 million, or 6.7 percent.
- Motor vehicle taxes produced $74.1 million, up by $5.4 million, or 7.8 percent.
- Other collections composed of some 60 different sources produced $141.8 million – down by $3.7 million, or 2.5 percent.
Combined gross receipts for the past 12 months compared to the prior period show:
- Gross revenue totals $17.48 billion. That is $1.98 billion, or 12.8 percent, above collections from the previous 12 months.
- Gross income taxes generated $6.0 billion, an increase of $700.5 million, or 13.1 percent.
- Individual income tax collections total $5.0 billion, up by $587.3 million, or 13.2 percent.
- Corporate collections are $1.0 billion, an increase of $113.2 million, or 12.8 percent.
- Combined sales and use taxes generated $6.9 billion, an increase of $544.3 million, or 8.6 percent.
- Gross sales tax receipts total $5.8 billion, up by $428.5 million, or 7.9 percent.
- Use tax collections generated $1.0 billion, an increase of $115.8 million, or 12.3 percent.
- Oil and gas gross production tax collections generated almost $2.0 billion, up by $747.2 million, or 59.9 percent.
- Motor vehicle collections total $875.7 million, an increase of $3.0 million, or 0.3 percent.
- Other sources generated $1.7 billion, down by $13.5 million, or 0.8 percent.
The annual inflation rate was at 6.5 percent in December, according to the U.S. Bureau of Labor Statistics (BLS), as measured by the Consumer Price Index.
“The energy component of the index at 7.3 percent over the year is expected to remain high, along with the food index which stands at 10.4 percent,” the news release states.
Oklahoma employment numbers are strong despite workforce trend changes. The state’s unemployment rate remained at 3.4 percent in December, lower than the nation’s overall 3.5 percent jobless rate, according to BLS. The unemployment rate has not changed since September.