Despite a declaration of revenue failure, the monthly report on February gross receipts to the Oklahoma Treasury shows signs of an improving energy sector. Oklahoma State Treasurer Ken Miller announced a second month of positive growth following 20 months of contraction. February also marked the first increase in sales tax collections since March of last year and only the fourth month of positive sales tax numbers in the past two years, according to the report.
The February receipts of $759.5 million expanded by $1 million, or 0.1 percent, compared to February of 2016.
“State budget problems and missed estimates notwithstanding, indications from gross receipts and other measurements show a marginally improving Oklahoma economy,” said Miller. “The revitalized economic activity might take some time to filter down into the state budget, but we have good reasons to remain cautiously optimistic.”
The monthly collections from oil and natural gas production taxes have been lower than the prior month for 14 straight months. The February gross production collections rose to $37.9 million, an increase of $9.3 million, or 32.4 percent, from last February. February collections come from December oil field activity when the average price of benchmark West Texas Intermediate crude oil was $51.97 a barrel. Compared to January reports, gross production collections are up by $4.8 million, or 14.7 percent, over the month.
Gross receipts for the past 12 months totaled $10.8 billion and are $624.2 million, or 5.5 percent less than collections from the previous 12-month period. Each of the state’s major revenue sources – income, gross production, sales and motor vehicle taxes – are less than collections from the prior 12 months.
Oil and gas gross production tax collections brought in $367.3 million during the 12 months, down by $51.9 million, or 12.4 percent, from the prior period.
Other tax collections took a hit too. Individual income tax collections total $3.5 billion, down by $259.4 million, or 6.9 percent, from the prior 12 months. Corporate collections are $434.8 million for the period, a decrease of $145 million, or 25 percent, from the previous 12 months. Collections of sales taxes generated $4.2 billion, a decrease of $125.9 million, or 2.9 percent, from last February.