July Gross Receipts to the Treasury Show Continued Growth in Oklahoma Economy
Charts and graphs
OKLAHOMA CITY – All signs point to ongoing expansion of
the Oklahoma economy as July Gross Receipts to the Treasury of $1 billion and
12-month collections of $12.3 billion, both reached unprecedented high levels, State
Treasurer Ken Miller announced today.
Miller
said the July and 12-month numbers, which provide a general reflection of state
economic activity, show growth of more than 10 percent each.
“Economic
expansion is clearly driving the growth we see in Gross Receipts to the
Treasury,” Miller said. “Continued improvement in state employment, notably in
the oil fields, and positive numbers in other economic indicators are continued
signs of ongoing growth.”
Increases
are seen in each major revenue stream for both July and the past 12 months;
employment is up by more than 32,000, including 5,200 news jobs in the oil
patch, during the past year; and leading indicator indices show anticipated
business expansion.
In
July, income tax collections are up by 10 percent compared to July of last
year, sales tax is up by almost 9 percent, and gross production is up by 64
percent.
For the
12-month period, income tax is up by 8.8 percent, sales tax by 11 percent, and
gross production by 60 percent.
New
revenue collections
Revenue
from tax increases that took effect on July 1, including hikes in cigarette,
fuel and gross production taxes, will not begin flowing to the tax commission
until next month and, therefore, have no impact on July’s report.
Other
new revenue that resulted from legislative changes made in 2017, including
sales tax on vehicles and gross production incentive rate changes, has
generated approximately $340 million during the past 12 months, according to
the tax commission. Total growth in gross receipts is more than $1.2 billion
during the same time period, which means the new revenue accounts for slightly
more than one-fourth of the increase.
Other
indicators
The Oklahoma
Business Conditions Index has topped growth neutral for 12 consecutive months.
The July index decreased slightly to 60.6, from 61.1 in June. Numbers above 50
indicate anticipated economic growth during the next three to six months.
Oklahoma’s
seasonally adjusted unemployment rate of 3.9 percent in June is down by
one-tenth of a percentage point from May, according to figures released by the
Oklahoma Employment Security Commission. The U.S. jobless rate in June
increased to 4 percent in June, up by two-tenths of a percentage point from the
prior month.
July
collections
July gross
collections total $1 billion, up $100.6 million, or 10.8 percent, from July 2017.
Gross income
tax collections, a combination of individual and corporate income taxes,
generated $300.7 million, an increase of $27.4 million, or 10 percent, from the
previous July.
Individual
income tax collections for the month are $283.8 million, up by $25.2 million,
or 9.7 percent, from the prior year. Corporate collections are $16.9 million, an
increase of $2.2 million, or 15 percent.
Sales
tax collections, including remittances on behalf of cities and counties, total
$420.5 million in July. That is $34.1 million, or 8.8 percent, more than July
2017.
Gross
production taxes on oil and natural gas generated $68.8 million in July, an
increase of $26.9 million, or 64 percent, from last July. Compared to June reports,
gross production collections are up by $704,356, or 1 percent.
Motor
vehicle taxes produced $73 million, up by $5 million, or 7.4 percent, from the same
month of 2017.
Other
collections, consisting of about 60 different sources including use taxes,
along with taxes on fuel, tobacco, and alcoholic beverages, produced $164.5 million
during the month. That is $7.2 million, or 4.6 percent, more than last July.
Twelve
month collections
Gross
revenue totals $12.3 billion from the past 12 months. That is $1.2 billion, or 11.3
percent, more than collections from the previous 12 months.
Gross income
taxes generated $4.3 billion for the period, reflecting an increase of $346.6
million, or 8.8 percent, from the prior 12 months.
Individual
income tax collections total $3.8 billion, up by $277.3 million, or 7.8 percent,
from the prior 12 months. Corporate collections are $473 million for the
period, an increase of $69.3 million, or 17.2 percent, over the previous period.
Sales
taxes for the 12 months generated $4.7 billion, an increase of $469.4million,
or 11 percent, from the prior period.
Oil and
gas gross production tax collections brought in $726.8 million during the 12
months, up by $272.7 million, or 60 percent, from the previous period.
Motor
vehicle collections total $773.7 million for the period. This is an increase of
$12.5 million, or 1.6 percent, from the trailing period.
Other
sources generated $1.8 billion, up by $145.3 million, or 8.9 percent, from the
previous year.
About Gross Receipts to the
Treasury
The Office of the
State Treasurer has issued the monthly Gross Receipts to the Treasury report
since March 2011 to provide a timely and broad view of the state’s macro
economy.
It is released 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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