The State of Oklahoma budget continues to rebound as officials reported a 12-percent growth in revenue in December 2017 (as compared to December 2016).
December tax collections totaled $1 billion, up $107.9 million, or 12 percent, from December 2016.
In fact, state revenue rose by 6.2 percent in 2017, according to figures released by State Treasurer Ken Miller.
At $1 billion, December collections are up by $107.9 million compared to receipts from December 2016. During the last year, gross receipts topped the $11 billion mark, finishing at $11.45 billion ahead of 2016 collections by $667.6 million.
“What a difference a year can make,” Miller said. “At this time last year, calendar year gross receipts were down by more than 7 percent with every major revenue stream showing contraction. This year, we show across-the-board growth with an encouraging trend line.”
Monthly receipts during the calendar year were higher than the same month of the prior year in all but one month. The rate of increase has generally trended higher with each passing month.
In December, growth rates in the major revenue streams ranged from 42.7 percent in gross production taxes to 5.1 percent in motor vehicle tax collections. For the calendar year, growth ranged from 53.4 percent in gross production taxes to 2.6 percent in combined individual and corporate income tax receipts.
The tax commission attributes $24.2 million in December to new revenue resulting from bills enacted during the last regular session. The additional revenue comes primarily from increases in sales tax exemptions and gross production incentive tax rates.
The new revenue accounts for 22.4 percent of the growth in December collections compared to the prior year. Since August, law changes from last session have yielded $114.8 million in new gross revenue.
At 4.2 percent, Oklahoma’s seasonally-adjusted unemployment rate in November was down by two-tenths of a percentage point from the prior month, according to figures released by the Oklahoma Employment Security Commission. State jobless numbers improved by seven-tenths of a percentage point over the year. The U.S. jobless rate was set at 4.1 percent in November, less than Oklahoma’s rate for a fifth consecutive month.
The Oklahoma Business Conditions Index has topped growth neutral for five consecutive months. The December index was set at 59.3, down from 60.8 in November. Numbers above 50 indicate anticipated economic growth during the next three to six months.
Gross income tax collections, a combination of personal and corporate income taxes, generated $351.2 million, an increase of $32.2 million, or 10.1 percent, from the previous December.
Individual income tax collections for the month are $296.5 million, up by $27.8 million, or 10.4 percent, from the prior year. Corporate collections are $54.7 million, an increase of $4.4 million, or 8.7 percent.
Sales tax collections, including remittances on behalf of cities and counties, total $403.5 million in December. That is $40.1 million, or 11 percent, more than December 2016.
Gross production taxes on oil and natural gas generated $56.2 million in December, an increase of $16.8 million, or 42.7 percent, from last December. Compared to November reports, gross production collections are up by $3.4 million, or 6.5 percent.
Motor vehicle taxes produced $59.9 million, up by $2.9 million, or 5.1 percent, from the same month of 2016.
Other collections, consisting of about 60 different sources including use taxes, along with taxes on fuel, tobacco, and alcoholic beverages, produced $138.9 million during the month. That is $15.9 million, or 12.9 percent, more than last December.
Total state revenue totaled $11.45 billion from the past 12 months. That is $667.6 million, or 6.2 percent, more than collections from the previous 12 months.
Gross income taxes generated $4 billion for the 2017 calendar year, reflecting an increase of $100.5 million, or 2.6 percent, from the 2016 calendar year.
Individual income tax collections total $3.6 billion, up by $141.6 million, or 4.1 percent, from the prior 12 months. Corporate collections are $405.3 million for the period, a decrease of $41.1 million, or 9.2 percent, over the previous period.
Sales taxes for the year generated $4.4 billion, an increase of $236.9 million, or 5.6 percent, from the prior year.
Oil and gas gross production tax collections brought in $537.2 million during the year, up by $187 million, or 53.4 percent, from the previous year.
Motor vehicle collections total $764.9 million for the period. This is an increase of $23 million, or 3.1 percent, from the trailing period.
Other sources generated $1.7 billion, up by $120.2 million, or 7.7 percent, from the previous year.