Record-setting tax revenue for November, 12 months

Lawmakers who want to raise taxes will have a weaker argument when the legislative session begins in February thanks to record-setting revenues pouring into state coffers.

State Treasurer Ken Miller’s report on November tax receipts showed an increase of nearly 16 percent from November of 2017.

The November total of $1,000,000,000.00 and the 12-month total of $12,800,000,000.00 set new records for income for the state. That is $1,500,000,000.00 or 13.1 percent more than collections from the previous 12 months. Part of the $140,000,000.00 November increase is credited to passage of the largest tax increase in state history in the legislative session earlier this year.

“The economy continues to propel treasury collections,” Miller said. “With 20 consecutive months of growth in monthly gross receipts and unemployment at its lowest in 17 years, Oklahoma is on track to finish 2018 on a high note.”

All major revenue streams show growth in November, led by the gross production tax on crude oil and natural gas, which surged by more than 125 percent compared to November 2017.

November gross production payments reflect oilfield activity from two months prior, in September, when West Texas Intermediate crude oil at Cushing averaged $70.23 per barrel. November’s lower crude prices of about $55 per barrel will not be reflected until January.

Sales tax receipts increased by 6.7 percent and motor vehicle collections were up by more than 11 percent during the month. Income tax collections grew by slightly less than 1 percent.

During the past 12 months, all major revenue streams show growth ranging from 78 percent from gross production to 2.7 percent from motor vehicle receipts.

The historic tax increase earlier this year added $61.6 million to monthly collections, 6 percent of November gross receipts.

The largest share, $37.8 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 $10.1 million, and the $1 per pack hike in cigarette taxes added $13.6 million to November’s total.

Oklahoma’s seasonally adjusted unemployment rate of 3.4 percent in October is down by one-tenth of a percentage point from September. The U.S. jobless rate of 3.7 percent is unchanged from the prior month, according to figures released by the Oklahoma Employment Security Commission.

In November, income tax collections generated $263.7 million, an increase of $864,491, or 0.3 percent, from the previous November. Individual income tax collections for the month were $253.1 million, up by $772,443, or 0.3 percent. Corporate collections are $10.6 million, an increase of $92,048, or 0.9 percent.

Sales tax collections total $407.7 million in November. That is $25.7 million, or 6.7 percent, more than November 2017.

Gross production taxes on oil and natural gas generated $118.8 million in November, an increase of $66.1 million, or 125.3 percent, from last November. Compared to October reports, gross production remittances are up by $16.7 million, or 16.4 percent.

Motor vehicle taxes produced $60.7 million, up by $6.2 million, or 11.3 percent, from the same month of 2017.

Other collections, consisting of about 60 different sources including use taxes, along with taxes on fuel, tobacco, and alcoholic beverages, produced $182.7 million during the month. That is $41.3 million, or 29.2 percent, more than last November.