Gross revenues to the State Treasury show Oklahoma’s economy is doing very well at the start of the new year, State Treasurer Randy McDaniel said.

January gross receipts of $1.5 billion are up by more than 27 percent compared to the same month of last year. Twelve-month receipts of $15.5 billion measure growth of more than 18 percent compared to the prior period.

McDaniel said analysis shows the reasons behind the numbers include more than organic state economic expansion.

“A growing economy is always central to record-breaking receipts, but federal funds and inflation are helping push the numbers higher,” McDaniel said. “All of these factors should be considered this session as proposals impacting future state revenue and spending are discussed.”

Federal direct payments to taxpayers, along with aid to businesses during the pandemic, significantly boosted economic activity in Oklahoma. Inflation during the past year pushed prices up an average of 7 percent – the highest rate since 1982.

The gross receipts report for January shows substantial growth in all major revenue streams. Gross production collections jumped by 149.5 percent, combined individual and corporate receipts rose by 28 percent, and sales taxes were up 18.8 percent. Motor vehicle collections increased by 6.7 percent.

Use tax collections for January, paid on out-of-state purchases including internet sales, topped $100 million for the first time in state history and jumped by 13.9 percent. Use tax collections have risen steadily since the U.S. Supreme Court’s Wayfair decision in June 2018 that paved the way for easier collection of taxes on internet sales.

Twelve-month collections rose by $2.38 billion, or 18.1 percent, compared to the previous 12 months with all four major revenue streams showing expansion ranging from 108.1 percent in gross production receipts to 12.7 percent in motor vehicle taxes.