12-month revenue numbers are up

For the first time in more than two and a half years, monthly revenue to the Treasury are less than collections from the same month of the prior year due to a number of key factors, State Treasurer Randy McDaniel announced.

November total monthly collections were $989.7 million, down by $43.8 million, or 4.2 percent, from last year. The last time monthly gross receipts were less than the same month of the prior year was in March 2017, which was 32 months ago.

The reduction in total collections appears to be due to a combination of economic and timing issues.

November had one less day of tax collections than last year but the primary reasons for the decrease are lower sales tax and oilfield tax payments. Sales tax receipts are down for a fifth time in the past six months, and oil and gas gross production collections are considerably lower for a third consecutive month.

“Lower energy prices are having a significant influence on gross production tax receipts,” McDaniel said. “The recent large layoffs in the energy sector impact both families and the overall economy. My heart goes out to the families affected by the layoffs.”

In addition to sales and gross production declines of 5.2 percent and 30.8 percent, respectively, November receipts from motor vehicle taxes were down by 10.8 percent, and corporate income taxes were off by 30.2 percent. Receipts from individual income tax and use tax were up but both by less than 5 percent. 

But gross revenue totals $13.69 billion from the past 12 months, December 2018 through November 2019. That is $859.5 million, or 6.7 percent, above collections from the previous 12-month period.

The seasonally adjusted jobless rate for Oklahoma increased to 3.3 percent in October, one-tenth of a percentage point above September’s rate. The U.S. unemployment rate rose to 3.6 percent in October, up from 3.5 percent in September, according to figures released by the Oklahoma Employment Security Commission.

November gross collections were $989.7 million, down by $43.8 million, or 4.2 percent, from November 2018.

Income tax collections generated $265.5 million, an increase of $1.9 million, or 0.7 percent, from the previous November.

Individual income tax collections for the month are $258.1 million, up by $5.1 million, or 2 percent, from the prior year. Corporate collections are $7.4 million, a decrease of $3.2 million, or 30.2 percent. Wide monthly variances are not unusual for corporate income tax collections.

Combined sales and use tax collections total $463.9 million in November. That is $3.1 million, or 0.7 percent, less than November 2018.

Sales tax collections in November total $402.5 million, a drop of $5.2 million, or 1.3 percent from the same month of the prior year. Use tax receipts, collected on out-of-state purchases including online sales, generated $61.4 million, an increase of $2 million, or 3.4 percent, over the year.

Gross production taxes on oil and natural gas generated $82.2 million in November, a decrease of $36.6 million, or 30.8 percent, from last November.

 Compared to October 2019 reports, gross production collections are up by $10.6 million, or 14.8 percent.

Motor vehicle taxes produced $54.1 million, down by $6.5 million, or 10.8 percent, from the same month of 2018.

Other collections composed of some 60 different sources including taxes on fuel, tobacco, medical marijuana, and alcoholic beverages, produced $123.9 million during the month. That is $585,225, or 0.5 percent, more than last November.