State tax revenues plunged by more than half a billion dollars in April as the coronavirus pandemic disrupts the economy, State Treasurer Randy McDaniel said.
The April total was $1.08 billion, a drop of $502.5 million, or 31.8 percent, from April 2019.
The economic impact hit all major revenue streams, but really dropped income tax collections due to the postponement of the April 15 filing deadline to July 15. Gross income tax receipts are down by more than 50 percent for the month.
“The state economy is clearly showing the repercussions of the novel coronavirus,” Treasurer McDaniel said. “While the resiliency of Oklahomans is a key source for enduring optimism, the near-term situation is expected to be especially challenging.”
McDaniel said gross production tax collections have yet to reflect the impact of record low oil prices.
Gross production receipts in April are based on oil field activity in February when oil was still more than $50 per barrel.
The average price of oil during April was less than $20 per barrel. The impact of the price crash will begin to be seen in May and moreso in June.
Combined sales and use tax collections of $430.4 million are down by $44.7 million, or 9.4 percent, likely due to shelter-in-place policies. Sales taxes, down by $47.3 million, are somewhat offset by a $2.6 million increase in use taxes assessed on out-of-state purchases including online sales.
The March jobless rate was listed at 3.1 percent, but the employment survey was taken before many jobs were lost due to the pandemic. Since March 15, the Oklahoma Employment Security Commission reports it has paid more than 430,000 jobless claims. In early March, 56,100 Oklahomans were listed as unemployed.
Oklahoma’s gross income tax collections, a combination of individual and corporate income taxes, generated $405.8 million, a decrease of $414.4 million, or 50.5 percent, from the previous April.
Sales tax collections in April total $368.3 million, a drop of $47.3 million, or 11.4 percent from the same month of the prior year.