Oklahoma’s government revenue continues to see a drop in collections and oil and gas gross production tax revenue remained down in October.
State Treasurer Randy McDaniel announced gross receipts to the treasury continued their slide as individual income tax collections were down 7.5%.
He said it is another indication “the state’s economic downturn has yet to subside.”
Gross production taxes on oil and natural gas totaled $48 million, a decrease of $23.7 million, or 33%.
October receipts from all sources totaled $1.1 billion, down by more than $47 million, or 4.1%, from October of last year. Combined gross receipts for the past 12 months total $13.2 billion, off by more than $500 million compared to collections from the previous 12 months.
“We are experiencing the spillover effect of the pandemic as it chills global demand for oil and gas,” said Treasurer McDaniel. “When the energy industry is down in Oklahoma, it reduces economic activity across the state, including earned income
and consumer spending.”
The gross production tax on oil and natural gas has been down
significantly every month for more than a year. Oil field employment is at its lowest level, 33,700, since prior to the Great Recession. Rig counts statewide are reported at 14 in October, compared to a peak of 213 six years ago.
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