July Gross Receipts to the Treasury Show Strong Start for New Fiscal Year
Charts and graphs
OKLAHOMA CITY – July Gross Receipts to the Treasury
provide additional evidence of an expanding Oklahoma economy with total
collections topping the July 2016 report by almost nine percent, State
Treasurer Ken Miller announced today.
Collections
during each month of calendar year 2017, except for March, have shown growth. July
receipts of $926.9 million are up by $73.1 million, or 8.6 percent, compared to
July of last year.
“The body of evidence supporting economic
recovery is growing,” Miller said. “Gross receipts show ongoing expansion, as
do employment reports and broader measurements, such as the latest state Gross
Domestic Product (GDP) release.”
The
federal Bureau of Economic Analysis reported in late July that Oklahoma’s GDP
rose for a second consecutive quarter, up by 1.9 percent during the first
quarter of 2017, following four quarters of contraction – classically defined
as a recession.
All
major revenue streams expanded in July compared to the prior year.
Gross
production tax collections are higher than the prior year for a tenth
consecutive month. July receipts from the production of oil and natural gas
generated $41.9 million, an increase of $11.4 million, or 37.4 percent.
Income,
sales, and motor vehicle taxes show increases ranging from 6 percent to 12.5
percent during the month.
Gross
receipts for the past 12 months, at $11 billion, are less than the total from
the previous period by only $2.8 million, or 0.03 percent. Growth in gross
production collections is driving the shrinking margin. Individual income and
sales tax receipts trail the prior 12 months by less than one percent each.
Revenue
raising measures not reflected
Legislation
enacted last session that will result in increased revenue for the state is not
yet reflected in gross receipts. The Oklahoma Tax Commission reports any
additional revenue raised due to law changes will not begin to impact the
reports until next month.
Other
indicators
Oklahoma’s
seasonally-adjusted unemployment rate remained at 4.3 percent for a fourth
consecutive month in June, according to the Oklahoma Employment Security
Commission. State jobless number improved seven-tenths of a percentage point
over the year. The U.S. jobless rate was set at 4.4 percent in June.
After showing
anticipated economic growth for six consecutive months, the Oklahoma Business
Conditions Index dropped in July. The overall index was set at 49.4 in July,
down from 57.7 in June. Numbers below 50 indicate anticipated negative growth
in the next three to six months. The energy sector continued to bring strength
to the index, while slight weakness in the manufacturing sector lowered the
overall rate.
July
collections
Receipts
for July set gross collections at $926.9 million, up $73.1 million, or 8.6 percent,
from July 2016.
Gross income
tax collections, a combination of personal and corporate income taxes,
generated $273.3 million, an increase of $15.6 million, or 6 percent, from the
previous July.
Personal
income tax collections for the month are $258.6 million, up by $12.6 million,
or 5.1 percent, from the prior year. Corporate collections are $14.7 million, an
increase of $3 million, or 25.5 percent.
Sales
tax collections, including remittances on behalf of cities and counties, total
$386.5 million in July. That is $31.1 million, or 8.7 percent, more than July
2016.
Gross
production taxes on oil and natural gas generated $41.9 million in July, an
increase of $11.4 million, or 37.4 percent, from last July. Compared to June reports,
gross production collections are up by $293,860, or 0.7 percent.
Motor
vehicle taxes produced $68 million, up by $7.5 million, or 12.5 percent, from
the same month of last year.
Other
collections, consisting of about 60 different sources including use taxes,
along with taxes on fuel, tobacco, horse race gambling and alcoholic beverages,
produced $157.2 million during the month. That is $7.5 million, or 5 percent, more
than last July.
Twelve-month
collections
Gross
revenue totals $11 billion from the past 12 months. That is $2.8 million, or 0.03
percent, less than collections from the previous 12 months.
Gross income
taxes generated $3.9 billion for the August 2016-July 2017 period, reflecting a
decrease of $150.3 million, or 3.7 percent, from the August 2015-July 2016
period.
Personal
income tax collections total $3.5 billion, down by $30 million, or 0.8 percent,
from the prior 12 months. Corporate collections are $403.7 million for the
period, a decrease of $120.3 million, or 23 percent, over the previous period.
Sales
taxes for the period generated $4.2 billion, a decrease of $14.5 million, or 0.3
percent, from the prior year.
Oil and
gas gross production tax collections brought in $454.1 million during the past
12 months, up by $98.1 million, or 27.5 percent, from the previous 12-month
period.
Motor
vehicle collections total $761.1 million for the period. This is a drop of $11
million, or 1.5 percent, from the trailing period.
Other
sources generated $1.6 billion, up by $53 million, or 3.4 percent, from the
previous 12 months.
About Gross Receipts to the
Treasury
Since March 2011,
the Office of the State Treasurer has issued the monthly Gross Receipts to the
Treasury report, which provides a timely and broad view of the state’s macro
economy.
It is provided in
conjunction with the General Revenue Fund allocation report from the Office of
Management and Enterprise Services, which provides important information to
state agencies for budgetary planning purposes.
The General
Revenue Fund receives less than half of the state’s gross receipts with the
remainder paid in rebates and refunds, remitted to cities and counties, and
placed into off-the-top earmarks to other state funds.
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For
more information contact: Tim Allen, Deputy Treasurer for
Communications & Program Administration
(405) 522-4212
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