Gross production tax collections for October in Oklahoma came in below the estimate of state officials with the Oklahoma Office of Management and Enterprise Services. And it led one official to suggest there’s nothing to indicate the state will have significantly more money for agency appropriations than anticipated.
The collections totaled $34.3 million but were 4.5 percent of $1.6 million below the estimate, according to Denise Northrup, Director of OMES. However, the collections from oil and gas were still $11.6 million or 51.2 percent more than the previous year.
Her office reported that total oil collections over the first four months of the fiscal year remain $12.9 million or 49.3 percent under the estimate. OMES said the numbers came in below the estimate because oil revenues have yet to fulfill the required $150 million statutory cap first allocated to six revolving funds–largely for three education funds.
“This year’s gross production forecast is built on oil at $53.04 per barrel and natural gas at $2.99 per Mcf. The news earlier that the price of US crude oil dipped to its lowest level in a year at below $56 per barrel indicates that there could be some challenges yet to come,” said Northrup in a press release from OMES. “The reality is there is a two to three month lag before the lower prices of today will impact collections for the remainder of the fiscal year, even if production remains steady.”
General Revenue Fund collections for October were $520.2 million which was $10 million more above the monthly estimate. The collections were also $83.9 million or 19.2 percent over the October 2017 collections.
Total collections for the first four months of the fiscal year are $20.4 million or one percent over the estimate to date and $202.6 million above the prior year collections.
“Most reporting categories look to be on stable footing with gross production and the other revenues category falling short of their estimates in October,” said Northrup. “I’m encouraged to see individual income tax returns trending up. Solid returns in this category indicate businesses are expecting a healthy economy going into the holiday season.”
Sales tax collections of $186.2 million were $321,000 or 0.2 percent, above the estimate and $10.5 million, or 6.0 percent, above the prior year and should be on track for the remainder of the fiscal year. Corporate income tax contributed nothing to GRF collections due to refunds paid.
“The Board of Equalization meeting is coming up next month which will be our first opportunity to see preliminary estimates of the general revenue available for the FY 2020 budget,” said Northrup. “Nothing I’m seeing now indicates that we will have significantly more money for agency appropriations than anticipated.”
- Total income tax collections of $187.9 million were $14.9 million, or 8.6 percent, above the estimate and $25.3 million, or 15.5 percent, above the prior year.
Individual income tax collections of $187.9 million were $16.0 or 9.3 percent, above the estimate and $25.3 million, or 15.5 percent, above the prior year.
Corporate income tax collections were net zero and did not contribute to the total. - Sales tax collections of $186.2 million were $321,000, or 0.2 percent, above the estimate and $10.5 million, or 6.0 percent, above the prior year.
- Gross production tax collections of $34.3 million were $1.6 million, or 4.5 percent, below the estimate and $11.6 million, or 51.2 percent, above the prior year.
Natural gas collections of $34.1 million were $5.7 million, or 20.0 percent, above the estimate and $14.7 million, or 75.3 percent, above the prior year.
Oil collections of $149,000 were $7.3 million, or 98 percent, below the estimate and $3.1 million, or 95.4 percent, below the prior year. - Motor vehicle tax collections of $17.4 million were $259,000, or 1.5 percent, above the estimate and $652,000, or 3.9 percent, above the prior year.
- Other revenue collections of $94.6 million were $3.9 million, or 4.0 percent, below the estimate and $35.8 million, or 61.0 percent, above the prior year.
