Oil and Gas Tax Collections “High Performers” in July

Tax collections on oil and gas production in Oklahoma in July once again led the way in total General Revenue Fund collections according to Preston Doerflinger, Secretary of Finance and Revenue.

The total collections in all categories met the official monthly estimate but were ahead 10.7 percent for July of 2016.

Gross production tax collections totaled $17.6 million. They were $2.4 million or 16 percent more than the estimate. The total also topped the collections a year ago by $10 million or 129.5 percent.

Natural gas collections totaled $15.1 million, a figure 12.2 percent or $1.6 million more than the estimate. Compared to a year ago, the gas collections were $8.8 million or 139.2 percent higher.

Oil collections came to $2.5 million, which were $790,000 or 44.9 percent over the estimate and $1.2 million or 85.3 percent above collections of one year ago.

Doerflinger classified the oil and gas gross production revenue as “high performers” but also indicated collections from other major sources “lagged.”

“While the July estimate was met, both income tax and sales tax came in slightly below the estimate,” he said. “Gross production taxes made up the difference to be able to break even, but it should be noted that income and sales tax make up a much larger proportion of general revenue than gross production taxes, so we will be cautious regarding our expectations in those revenue areas.”