Dec. up 13.4%, ‘18 up 13.2%
State revenues increased by 13.2 percent – more than $1.5 billion – in 2018 compared to 2017, according to new State Treasurer Randy McDaniel.
The state took in a little less than $13 billion in taxes in 2018, with $1.1 billion coming in December. December 2018 was $135 million higher than December 2017 – a 13.4 percent increase.
“Oklahoma’s economy has been performing admirably,” McDaniel said. “Gross receipts have improved significantly, while unemployment remains low. These and other economic indicators point to a favorable outlook for the state, but could be restrained by the downturn in energy prices, global trade uncertainty, and stock market volatility.”
Every major revenue stream expanded during 2018 at rates ranging from 84 percent for gross production taxes on oil and natural gas production to 2.5 percent for motor vehicle taxes.
For the month of December, every major revenue source except individual income tax receipts showed growth. The tax commission reports a 1 percent reduction in individual income tax collections was likely due to one less remittance deadline for withholding taxes this December compared to last.
Officials continue to closely watch gross production tax collections due to the recent downturn in crude oil prices. December gross production collections of $118.4 million are up by $62.2 million, or 110.7 percent, compared to December 2017.
However, December collections reflect oilfield activity from October when West Texas Intermediate crude oil at Cushing averaged $70.75 per barrel. Collections in January will reflect November production, when oil prices averaged $56.96 per barrel.
Revenue generated by increased tax rates approved in House Bill 1010 during special session last year added $62.6 million to monthly collections, 5.5 percent of December gross receipts.
The largest share, $38.5 million, came from the increase from 2 percent to 5 percent in the incentive tax rate on oil and natural gas gross production. Higher tax rates on gasoline and diesel fuel generated $9.5 million, and the $1 per pack hike in cigarette taxes added $14.6 million to December’s total.
Oklahoma’s seasonally adjusted unemployment rate of 3.3 percent in November is down by one-tenth of a percentage point from October.