Oil and gas revenue helped lead to $17 billion record revenue in Oklahoma

Randy McDaniel to get early jump on state treasurer's duties

 

Gross Receipts to the Treasury for the past 12 months topped a landmark high of $17 billion, State Treasurer Randy McDaniel announced Thursday.

Twelve-month gross receipts through September are $17.03 billion, up by $2.51 billion, or 17.3 percent, from the prior 12 months. That total is more than $4 billion, or 31 percent, higher than the trough of $13 billion measured in June 2020.

“Oklahoma’s economic expansion since the depths of the pandemic are nothing short of remarkable,” Treasurer McDaniel said. “Unemployment remains low, economic indicators are strong, and virtually every core sector of the economy as measured by gross receipts shows growth.”

Gross production taxes on oil and natural gas total $184.7 million, an increase of $78.6 million, or 74.1 percent.

For the past 12 months, oil and gas gross production tax collections generated $1.82 billion, up by $879.7 million, or 94 percent.

Major revenue streams for the past 12 months have increased by rates ranging from 94 percent for oil and gas gross production collections to 2.6 percent for motor vehicle receipts. The largest components – taxes on income and consumption – show double-digit growth with income tax collections up 16.5 percent and combined sales and use taxes up 11.9 percent.

The economic picture for the month of September, alone, is equally strong. September collections of $1.59 billion are up by $210.2 million, or 15.2 percent, from September 2021. All major revenue streams reflect growth, led by an increase of 74.1 percent for oil and gas gross production receipts. Sales and use tax collections continue to outpace inflation with growth of 9.7 percent compared to the same month of last year.

Other indicators

Rising US inflation rate to taper off next year – leading macroeconomic  influencers

As measured by the Consumer Price Index, the U.S. Bureau of Labor Statistics (BLS) reports the annual inflation rate at 8.3 percent in August. The energy component of the index is up 23.8 percent over the year. The food index rose by 11.4 percent.

The Oklahoma unemployment rate in August was reported as 3.1 percent by the BLS. That is up from 2.9 percent in July. The U.S. jobless rate was listed as 3.7 percent in August, up by two-tenths of a percentage point from July.

The monthly Oklahoma Business Conditions Index shrank in September. The index for the month was set at 55.6, down from 60.7 in August. The outlook remains positive as numbers above 50 indicate economic expansion during the next three to six months.

September collections

September 2022 collections compared to gross receipts from September 2021 show:

  • Total monthly gross collections are $1.59 billion, up by $210.2 million, or 15.2 percent.
  • Gross income tax collections, a combination of individual and corporate income taxes, generated $601.3 million, up by $71.3 million, or 13.5 percent.
    • Individual income tax collections are $404.2 million, an increase of $30.9 million, or 8.3 percent.
    • Corporate collections are $197.1 million, up by $40.4 million, or 25.8 percent.
  • Combined sales and use tax collections, including remittances on behalf of cities and counties, total $583.3 million – up by $51.5 million – or 9.7 percent.
    • Sales tax collections total $495.8 million, an increase of $39.9 million, or 8.7 percent.
    • Use tax receipts, collected on out-of-state purchases including internet sales, generated $87.5 million, an increase of $11.7 million, or 15.4 percent.
  • Motor vehicle taxes produced $74 million, up by $3.4 million, or 4.8 percent.
  • Other collections composed of some 60 different sources including taxes on fuel, tobacco, medical marijuana, and alcoholic beverages, produced $145.9 million – up by $5.3 million, or 3.8 percent.
    • The medical marijuana tax produced $4.2 million, down by $1.2 million, or 22.7 percent from September 2021.

Twelve-month collections

Combined gross receipts for the past 12 months compared to the prior period show:

  • Gross revenue totals $17.03 billion. That is $2.51 billion, or 17.3 percent, above collections from the previous 12 months.
  • Gross income taxes generated $5.92 billion, an increase of $839.1 million, or 16.5 percent.
    • Individual income tax collections total $4.9 billion, up by $622 million, or 14.6 percent.
    • Corporate collections are $1.03 billion, an increase of $217.1 million, or 26.9 percent.
  • Combined sales and use taxes generated $6.74 billion, an increase of $717.8 million, or 11.9 percent.
    • Gross sales tax receipts total $5.72 billion, up by $585.3 million, or 11.4 percent.
    • Use tax collections generated $1.02 billion, an increase of $132.5 million, or 14.9 percent.
  • Motor vehicle collections total $875.8 million, an increase of $22.3 million, or 2.6 percent.
  • Other sources generated $1.68 billion, up by $51.8 million, or 3.2 percent.
    • Medical marijuana taxes generated $56.6 million, down by $10 million, or 15 percent.
%d bloggers like this: