February tax receipts to the Oklahoma Treasury show Oklahoma’s economy continues to expand, but the Russian invasion of Ukraine raises many concerns including inflationary pressure, State Treasurer Randy McDaniel said.

February gross receipts of $1.06 billion are up by almost 12% compared to the same month of last year. That is a record high for February collections but reflect the slowest rate of growth in seven months.

Twelve-month receipts of $15.61 billion are up by more than 19% compared to the prior period.

McDaniel urged caution in spite of the growth in revenue collections.

“The repercussions from Russia’s invasion of Ukraine are only beginning to be felt,” McDaniel said. “The attack has caused death and destruction to the people of Ukraine, and it presents an unacceptable threat to the economic stability here at home.”

The annual inflation rate hit 7.5% in January, up one-half of a percentage point from December. The Ukrainian War-fueled upsurge in oil prices and the spillover effect of Russian sanctions are expected to impact inflation in the months ahead.

Gross production (oil and natural gas) collections in February jumped by 95.3%. Those monthly payments come from December sales when West Texas Intermediate crude oil averaged $70.71 per barrel and Henry Hub natural gas was priced at $3.76 per million BTU.

The cost of a barrel of oil has spiked as high as $115 so far in early March.

Increased gross production collections are expected in the coming months. February prices, to be reflected in April receipts, averaged $91.64 for crude oil and $4.69 for natural gas.

The gross receipts report for February shows growth in all major revenue streams. Combined individual and corporate receipts rose by 9.1 %, sales taxes were up 6.5 %, and motor vehicle collections increased by 17.5 %.

Twelve-month collections rose by $2.5 billion, or 19.1 %, compared to the previous 12 months with all four major revenue streams showing expansion ranging from 130.3 % in gross production receipts to 13.5 % in total income tax..

The Oklahoma unemployment rate in January will not be released until the middle of March. The state’s rate in December was reported as 2.3% by the U.S. Bureau of Labor Statistics. The U.S. jobless rate ticked up to 4% in January from 3.9% in December.

February collections

Compared to gross receipts from February 2021, collections in February 2022 show:

Total collections are $1.06 billion, up $113.2 million, or 11.9%.

Income tax collections, a combination of individual and corporate income taxes, generated $318.6 million, up by $26.6 million, or 9.1%.

Individual income tax collections are $302.6 million, an increase of $16.4 million, or 5.7%.

Corporate collections are $16 million, up by $10.2 million, or 177%.

Combined sales and use tax collections total $478.3 million – up by $29.2 million, or 6.5%.

Sales tax collections total $407.3 million, an increase of $22.9 million, or 5.9%.

Use tax receipts, collected on out-of-state purchases including Internet sales, generated $70.9 million, an increase of $6.3 million, or 9.8%.

Production taxes on oil and natural gas total $89.6 million, an increase of $43.7 million, or 95.3%.

Motor vehicle taxes produced $59.9 million, up by $8.9 million, or 17.5%.

Other collections composed of some 60 different sources including taxes on fuel, tobacco, medical marijuana, and alcoholic beverages, produced $117.7 million – up by $4.7 million, or 4.2 %.

The medical marijuana tax produced $4.5 million, down by $981,460, or 17.9% from February 2021.

Twelve-month collections

Combined receipts for the past 12 months compared to the previous period show:

Gross revenue totals $15.61 billion. That is $2.5 billion, or 19.1%, above collections from the previous period.

Income taxes generated $5.37 billion, an increase of $637.1 million, or 13.5 %.

Individual income tax collections total $4.47 billion, up by $382.3 million, or 9.4%.

Corporate collections are $897.3 million, an increase of $254.8 million, or 39.6%.

Combined sales and use taxes generated $6.39 billion, an increase of $871.8 million, or 15.8%.

Gross sales tax receipts total $5.44 billion, up by $730.9 million, or 15.5%.

Use tax collections generated $950.9 million, an increase of $140.9 million, or 17.4%.

Oil and gas gross production tax collections generated $1.29 billion, up by $730.4 million, or 130.3 %.

Motor vehicle collections total $881.6 million, an increase of $112.5 million, or 14.6%.

Other sources generated $1.68 billion, up by $146.7 million, or 9.6%.

Medical marijuana taxes generated $64.9 million, up by $4.5 million, or 7.5%.