State collections from oil and gas production again climbed to record levels in July, only a month after setting an all-time high, State Treasurer Randy McDaniel said.

Total collections in July of $1.38 billion are 13.3 % higher than receipts in July of last year. Receipts from the gross production tax on oil and gas extraction set a one-month record of $187.2 million, up by $104.6 million, or 126.6 %, from the prior year. This surpasses last month’s record by $16 million, or 9.4 %.

“Gross production collections are coming in at historic highs, which are driving growth in overall revenues,” McDaniel said. “Looking ahead, inflation continues to be a major concern, even though we’ve seen some minor relief at the pump.”

The AAA reports the average price of gasoline in Oklahoma is currently $3.76 per gallon, down from $4.54 a month ago. July gross production collections are based on May production when West Texas Intermediate crude oil was $109.55 per barrel and Henry Hub natural gas was $8.14 per million BTU.

Collections on income and consumption also rose in July, but at single-digit instead of triple-digit growth rates. Combined individual and corporate collections of $372.1 million are up by 5.5 %. Total sales and use tax receipts of $590.1 million show an increase of 8.1 %.

Monthly motor vehicle tax collections dropped for a second consecutive month. July receipts of $77.2 million are down by 5 % from the same month of last year.

Gross receipts for the past 12 months of $16.62 billion are up by $2.52 billion, or 17.9 %, over the prior 12-month period. All four major revenue streams show growth, ranging from 100.8 % in gross production collections to 5.4 % in motor vehicle tax receipts.

As measured by the Consumer Price Index, the U.S. Bureau of Labor Statistics (BLS) reports the annual inflation rate at 9.1 % in June. The energy component of the index is up 41.6 % over the year. The food index rose by 10.4 %.

The Oklahoma unemployment rate in June was reported as 2.9 % by the BLS. That is up from 2.8 % in June. The U.S. jobless rate was listed as 3.6 % in June, unchanged from May.

July collections

July 2022 collections compared to gross receipts from July 2021 show:

  • Total monthly gross collections are $1.38 billion, up by $161.3 million, or 13.3 %.
  • Gross income tax collections, a combination of individual and corporate income taxes, generated $372.1 million, up by $19.3 million, or 5.5 %.
  • Individual income tax collections are $345.1 million, an increase of $20.9 million, or 6.5 %.
  • Corporate collections are $27 million, down by $1.7 million, or 5.8 %.
  • Combined sales and use tax collections, including remittances on behalf of cities and counties, total $590.1 million – up by $44.3 million – or 8.1 %.
  • Sales tax collections total $503 million, an increase of $38.2 million, or 8.2 %.
  • Use tax receipts, collected on out-of-state purchases including internet sales, generated $87.1 million, an increase of $6.1 million, or 7.6 %.
  • Gross production taxes on oil and natural gas total $187.2 million, an increase of $104.6 million, or 126.6 %.
  • Motor vehicle taxes produced $77.2 million, down by $4.1 million, or 5 %.
  • Other collections composed of some 60 different sources including taxes on fuel, tobacco, medical marijuana, and alcoholic beverages, produced $151.4 million – down by $2.8 million, or 1.8 %.
  • The medical marijuana tax produced $4.2 million, down by $1.4 million, or 25 % from July 2021.

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

  • Gross revenue totals $16.62 billion. That is $2.52 billion, or 17.9 %, above collections from the previous 12 months.