Oil and gas slowdown hits state collections but one leader is still optimistic

A state agency in Oklahoma says general revenue fund collections for September were up nearly 2% over a year earlier, despite the state’s recent slowdown in the oil patch. Still, oil and gas tax collections were down and some state leaders might be keeping their fingers crossed that the slowdown won’t have a major impact on the state budget.

John Budd, director of the Office of Management and Enterprise Services said the September collections totaled $554.3 million and were $9.2 million or 1.7% above the collections of September 2018. But, the collections were also $36.8 million or 6.2% below the monthly estimate.

“Even with rig counts at an historic low and natural gas prices declining following a larger than expected inventory buildup, we do see some signs of economic growth,” he said. “Though gross production collections continue to come in below estimates and the prior year, other sources have largely offset cumulative effects over the first three months of the new fiscal year.”

  • Gross production tax collections of $13.4 million were $36.6 million, or 73.2%, below the estimate and $18.4 million, or 57.9%, below the prior year.
    Natural gas collections of $13.3 million were $22.2 million, or 62.5%, below the estimate and $18.5 million, or 58.1%, below the prior year.
    Oil collections of $65,000 were $14.5 million, or 99.6%, below the estimate and $46,500, or 248.1%, above the prior year.

Total GRF collections over the first quarter of fiscal year 2020 were $56.5 million, or 3.9%, above prior year collections for the same period, and $6.4 million, or 0.4%, below the estimate.

  • Motor vehicle tax collections of $2.5 million were $0.6 million, or 32.1%, above the estimate and $13.2 million, or 84.4%, below the prior year.
  • Total income tax collections of $319.6 million were $16.9 million, or 5.6%, above the estimate and $43.4 million, or 15.7%, above the prior year.
    Individual income tax collections of $251.6 million were $1.4 million, or 0.5%, below the estimate and $28.6 million, or 12.8%, above the prior year.
    Corporate income tax collections of $68 million were $18.2 million, or 36.6%, above the estimate and $14.8 million, or 27.8%, above the prior year.
  • Sales tax collections of $158.1 million were $0.4 million, or 0.3%, above the estimate and $8.6 million, or 5.7%, above the prior year.

 

 

 

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