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Income taxes power May general revenue increase

-- MEDIA RELEASE --

For Immediate Release

PRESTON L. DOERFLINGER
Director and Secretary
of Finance and Revenue

MARY FALLIN
Governor

State of Oklahoma
Office of Management and Enterprise Services

June 11, 2013

Income taxes power May general revenue increase

Total revenues up, on track to meet yearly projections

OKLAHOMA CITY — Rising income tax revenues again fueled increased General Revenue Fund (GRF) collections in May over the same month a year ago.

With one month left in Fiscal Year 2013, total GRF collections are $5 billion, which is $65.1 million or 1.3 percent above total collections for the same period a year ago, and $35.1 million or 0.7 percent higher than the official estimate upon which the FY 13 state budget is based.

“Oklahoma’s economy remains robust and reliable heading into the home stretch of the fiscal year,” said Secretary of Finance and Revenue Preston L. Doerflinger. “Revenues are once again tracking slightly above annual projections.”

Personal and corporate income tax collections in May ran ahead of projections and last year’s receipts by sizeable margins, according to the monthly GRF report of the Office of Management and Enterprise Services (OMES).

“Oklahoma’s pro-growth policies are catching national attention because they’re working,” said Gov. Mary Fallin. “We’re becoming a standard bearer for economic growth with solid revenue collections and an enviable unemployment rate, now 4.9 percent, compared to a national jobless rate of 7.6 percent. Oklahoma is very much open for business, and business is good.”

Individual income taxes contributed $176.3 million to the GRF in May, an increase of $7.3 million or 4.3 percent over the same month a year ago. Corporate income taxes came in at $5.2 million, an increase of 20.5 percent over May 2012 – marking the third consecutive month with a double-digit corporate income tax collection increase over the same month in 2012. Sales taxes were up $4.5 million or 3 percent from May 2012.

“Continued strength in these key revenue areas shows a state still on the move and growing,” Doerflinger said. “Most sectors remain healthy even amid federal budget uncertainty and the resulting effect on military and federal employee purchasing psyche, plus continued gross production collection challenges.”

Motor vehicle tax receipts were down $3.4 million or 16.9 percent in May and missed the estimate by $4.1 million or 19.7 percent. Over 11 months, motor vehicle taxes are down $20.2 million or 10.1 percent from last year and are almost $25 million or 12 percent below the estimate.

Gross production tax collections, especially from natural gas, continue to be a drag on GRF totals. After tax credits and rebates, collections from oil and gas taxes are now down $209.1 million or 52.6 percent from last year over the 11-month period. Natural gas accounts for more than $202 million of the $209 million difference.

GRF collections totaled $455.4 million in May, an increase of $25.1 million or 5.8 percent. However, the May figures are somewhat skewed because they showed a gain on oil tax receipts, with $29.4 million collected, compared with only $8.9 million a year ago. May 2012 oil production actually generated $33.75 million for the GRF, but most of that was diverted for the final payment on a $92.6 million supplemental appropriation for FY 2012, according to the Oklahoma Tax Commission.

Doerflinger is director of OMES, which issues the monthly GRF reports. The GRF is state government’s main operating fund and is made up of about 70 revenue sources. It is where all state taxes and fees flow, except those earmarked or dedicated to specific programs.

Major tax categories in May contributed the following amounts to the GRF:

  • Income tax – The total collected from individual and corporate income taxes in the month of May was $181.5 million, which was $8.2 million or 4.7 percent more than prior year collections and $13.6 million or 8.1 percent above the estimate.

    Individual income tax receipts of $176.3 million were $7.3 million or 4.3 percent more than the prior year and $12.1 million or 7.3 percent above the estimate.

    Corporate tax collections in May contributed $5.2 million to the GRF, which was $0.9 million or 20.5 percent above collections for the same month of 2012 and $1.5 million or 40.2 percent above the estimate.
  • Sales tax – The Tax Commission apportioned $157.7 million in sales tax collections to the GRF from May collections, which was $4.5 million or 3 percent more than the prior year and $5.3 million or 3.3 percent below the estimate.
  • Gross production tax – Gross production tax collections from May contributed $29.4 million to the GRF after rebates and credits. The amount was all collected from oil.  Total gross production tax collections for the 11-month period are down $141.7 million or 42.9 percent from the estimate.
  • Motor vehicle taxes – Motor vehicle taxes produced $16.8 million from May collections, which was $3.4 million or 16.9 percent less than the prior year and $4.1 million or 19.7 percent below the estimate.
  • Other revenue – Other revenue produced $69.9 million for the GRF in May. This amount was $1.6 million or 2.2 percent less than the prior year and $7 million or 9.1 percent below the estimate.

Monthly revenue tables available on the OMES website.


Media Contact

RON JENKINS
Public Information Officer
(405) 521-3267 | ron.jenkins@omes.ok.gov

About the Office of Management and Enterprise Services

The Office of Management and Enterprise Services provides financial, property, purchasing, human resources and information technology services to all state agencies, and assists the Governor’s Office on budgetary policy matters. Our mission: To lead, support, and serve. For more information, visit OMES.OK.gov.