OKLAHOMA (OBV) – Oklahoma’s 12-month gross receipt collection for October came in slightly below the previous year’s revenue, marking the first time in over two years that receipts to the Treasury fell below the prior year’s 12-month revenue.
Gross receipts for the last 12 months came in at $17.07 billion – $167 million less than the 12-month revenue from last October.
Reduced oil and gas revenue caused the 1 percent decline, according to Oklahoma State Treasurer Todd Russ.
“October marks the first time since March 2021 that receipts to the Treasury fell below the prior year’s 12-month revenue as expected,” Russ’ report states.
The state’s gross production tax revenue fell more than $484 million over the last 12 months, a more than 25 percent decline for the year.
October’s revenues from all sources amounted to $1.4 billion, down $73.8 million (5 percent) compared to last October, which was anticipated based on recent monthly trends, according to Russ’ office.
Gross receipt collections for October are also lower than the previous month’s collection with a $72 million (4.9 percent) decline.
October 2023 gross receipt collections compared to October 2022 gross receipts are as follows:
- Total monthly gross collections were $1.4 billion, down by $73.8 million (5 percent).
- Gross income tax collections, a combination of individual and corporate income taxes, generated $495.8 million, an increase of $1.3 million (0.3 percent).
- Individual income tax collections totaled $463.8 million, up by $13.3 million (2.9 percent).
- Corporate taxes are $32 million, down by $12 million (27.2 percent).
- Combined sales and use tax collections – including remittances on behalf of cities and counties – totaled $590.3 million, an increase of $16.4 million (2.9 percent).
- Sales tax revenues were $498.6 million, up by $9.6 million (2 percent).
- Use tax receipts, collected on out-of-state purchases including internet sales, generated $91.7 million, up by $6.8 million (8 percent).
- Gross production taxes on oil and natural gas totaled $99.8 million, a decrease of $97.9 million (49.5 percent).
- Motor vehicle taxes produced $71 million, a decrease of $4.2 million (6.3 percent).
- Other collections, composed of 60 different sources, produced $146.8 million, an increase of $2.2 million (1.5 percent).
Twelve-month gross receipts as of October compared to last year at the same point are as follows:
- Gross revenue totals $17.07 billion, $167.88 million (1 percent) below collections from the previous 12 months.
- Gross income taxes generated $6 billion, an increase of $8.2 million (0.1 percent).
- Individual income tax collections totaled $5.07 billion, up by $101.6 million (2 percent).
- Corporate collections were $942.2 million, down by $93.4 million (9 percent).
- Combined sales and use taxes produced $7.1 billion, an increase of $331.7 million (4.9 percent).
- Gross sales tax receipts totaled $5.99 billion, up by $238.2 million (4.1 percent).
- Use tax collections generated $1.1 billion, an increase of $93.4 million (9.1 percent).
- Oil and gas gross production tax collections were $1.42 billion, a decrease of $484.1 million (25.4 percent).
- Motor vehicle collections totaled $880.5 million, up by $6 million (0.7 percent).
- Other sources generated $1.64 billion, down by $29.4 million (1.8 percent).
The monthly gross receipts report provides a broad look at the state’s economy.
Less than half of the state’s gross receipts go to the General Revenue Fund, which is the state’s main operating account. The remainder is apportioned to other state funds, remitted to cities and counties and paid in rebates and refunds.
The Oklahoma Treasurer’s Office report included indicators that factored into the gross receipts. Those indicators are as follows:
- Oklahoma’s unemployment rose again in September, hitting 3 percent. It was 2.8 percent in August. The national unemployment rate remained at 3.8 percent in September.
- The annual inflation rate rose to 3.7 percent in September, according to Consumer Price Index measurements reported by the U.S. Bureau of Labor Statistics. The index’s energy component continued showing a decline, falling 0.5 percent, but the food index was parallel with the inflation rate, ending September at 3.7 percent.
- The Oklahoma Business Conditions Index remained above growth neutral in October, the second consecutive month. The October index was set at 53.0, compared to September 53.7. Numbers over 50 suggest economic expansion in the next three to six months.