November GRF receipts above estimate
Sales tax collections continue slide; receipts remain below yearly estimate
OKLAHOMA CITY — An unexpectedly high deposit from individual
income tax collections pushed November’s General Revenue Fund (GRF) 7.3 percent
above the monthly estimate, but with sales tax collections continuing to slide
the total receipts for the fiscal year remained below the estimate.
“We’ve been saying for more than a few months
now that the sales tax collections are some of the more troubling numbers,”
said Secretary of Finance, Administration and Information Technology Preston L.
Doerflinger. “Sales tax collections are probably a better gauge of where things
stand than the fluctuating income tax receipts.”
As state government’s main operating fund, the GRF is the key
indicator of state government’s fiscal status and the predominant funding
source for the annual appropriated state budget. GRF collections are revenues
that remain for the appropriated state budget after rebates, refunds and
mandatory apportionments. Gross collections, reported by the State Treasurer,
are all revenues collected by the state before rebates, refunds and mandatory
apportionments.
GRF collections in November totaled $342.5 million, which is
$23.3 million, or 7.3 percent, above the official estimate upon which the
Fiscal Year 2017 appropriated state budget was based and $11.6 million, or 3.3
percent, below prior year collections. Total GRF collections through the first
five months of FY 2017 are $2 billion, which is $7.2 million, or 0.4 percent,
below the estimate and $166 million, or 7.8 percent, below prior
year collections.
Last month, GRF collections were 1.8 percent below the fiscal
year estimate and 8.7 percent below the prior year collections. The improvement
and November’s number were driven up by unexpectedly high individual income tax
deposits of $111.7 million that were $45 million, or 67.6 percent, above the
estimate, but only $1.3 million, or 1.1 percent, above the prior year.
The November personal income tax estimate was dialed down this
year because last year’s November collections were 13 percent below the
estimate and a previous history of larger quality jobs refunds and other
rebates this time of year. Personal income tax gross collections were actually
lower this year than compared to last, but in a reversal of a trend the amount
of refunds and rebates were also lower.
“There are certain encouraging signs, but we’re still below last
year’s collections and the yearly estimate,” Doerflinger said. “The sliding
sales tax receipts are an indicator that we must still remain ready for some
tough challenges ahead.”
Sales tax collections were $13.5 million, or 8.2 percent, below
the estimate and $9.5 million, or 5.9 percent, below the prior year. Sales tax
collections have remained below the estimate for 21 of the last 22 months.
Sales tax makes up about 35 percent of the GRF’s annual collections and a large
portion of city service budgets.
“The state will continue seeing sales tax declines with a
depressed energy sector and consumer spending shifting from brick and mortar
operations to online outlets and the services sector,” Doerflinger said.
Doerflinger is director of OMES, which issues the monthly GRF
reports.
Major tax categories in November contributed the following
amounts to the GRF:
-
Total income tax collections of $111.7 million were $44.6
million, or 66.4 percent, above the estimate and $1.3 million, or 1.1 percent,
above the prior year.
Individual income tax collections of $111.7 million were $45 million, or 67.6
percent, above the estimate and $1.3 million, or 1.1 percent, above the prior
year.
Corporate income tax collections were entirely consumed by refunds and
contributed nothing to the General Revenue Fund. This was the case for the same
month last year, as well.
-
Sales tax collections of $151 million were $13.5 million, or 8.2
percent, below the estimate and $9.5 million, or 5.9 percent, below the prior
year.
-
Gross production tax collections of $12.6 million were $2.9
million, or 18.5 percent, below the estimate and $3.8 million, or 42.5 percent,
above the prior year.
Natural gas collections of $11.1 million were $4 million, or 26.8 percent,
below the estimate and $2.5, or 28.8 percent, above the prior year.
Oil collections of $1.6 million were $1.2 million, or 299 percent, above the
estimate and $1.3 million, or 451.3 percent, above the prior year.
-
Motor vehicle tax collections of $14.5 million were $798,000, or
5.8 percent, above the estimate and $140,000, or 1 percent, above the prior
year.
- Other revenue collections of $52.7 million were $5.7 million, or
9.7 percent, below the estimate and $7.3 million, or 12.1 percent, below the
prior year.
Revenue tables can be
viewed on the OMES website: https://www.ok.gov/OSF/News/November_2016_Financial_Report_Data_Tables.html.
Media Contact
MICHAEL BAKER Director of Public Affairs (405) 522-4265 | michael.baker@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: Supporting our partners through unified business services. For more information, visit OMES.OK.gov.
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