State revenues dropped by almost 6% in January – the biggest one-month reduction in the last eight months, according to State Treasurer Randy McDaniel.

Collections from all sources in January total $1.19 billion, down by $72.1 million, or 5.7 percent, from January 2020. Combined gross receipts from the past 12 months of $13.12 billion are below collections from the trailing 12 months by $610.4 million, or 4.4 percent.

This January had two less tax collection days than last January because of how the weekends fell. In addition, a pause in stimulus-related unemployment payments in late December is thought to have impacted income tax remittances. Combined individual and corporate income tax collections of $432.4 million dipped by 8 percent in January, down by $37.9 million during the month.

“Oklahomans have demonstrated remarkable strength and resiliency during the past year, but the state economy is clearly not immune to the fiscal impact caused by the pandemic,” Treasurer McDaniel said.

“Even so, we continue to anticipate recovery as public health improves and economic activity increases.”

Collections from the gross production tax on crude oil and natural gas followed a more than yearlong pattern, falling by almost 35 percent, to $57.5 million, during the month. Gross production tax payments in January are based on production from November, when the average price of West Texas Intermediate crude oil at Cushing was just under $41 per barrel. Crude oil prices rose to more than $50 per barrel in January, which will be reflected in future receipts.

Combined sales and use tax receipts of $506.4 million in January rose above prior year collections by $8.1 million, or 16 percent. However, the growth came exclusively from use tax, paid on out-of-state purchases including internet sales.

January motor vehicle taxes collections of $64.5 million were below those of the prior year by $1.5 million, or 2.3 percent.