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.
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