May revenue collections for the state of Oklahoma were up nearly 20 percent and the state’s gross production tax increased 130 percent, according to the Office of Management and Enterprise Services.
The tax on oil and gas generated $34 million which was about 130 percent more than the official state estimate. Despite the improved collections, overall for the fiscal year, they are below estimate. However, the state’s new rate of 5 percent on oil and gas wells will begin July 1.
Overall revenue collections for May totaled nearly $500 million, which was $82 million more than expected. Deposits in the state’s general revenue fund increased nearly $110 million more than May of 2017.
Denise Northrup, Director at OMES credited lower-than-expected corporate and personal income tax refunds with the increase.
“Obviously, this is good news and I’m pleased to see a strong showing that can largely be attributed to the state’s continued economic recovery,” said Northrup.
“We had lower refunds than expected, and that kind of skews the number,” said OMES spokeswoman Shelley Zumwalt. “An important thing to keep in mind is those refunds might show up next month.”
The state has received $5.2 billion in general fund revenues in the first eleven months of the current fiscal which. That’s nearly $731 million more than collected in the first 11 months of the last fiscal year. In the end, it will mean more general revenue money for legislators to consider in 2019 as they develop a new state budget.