The Oklahoma government’s estimates of revenue collections in July came below the guess of the experts. General Revenue Fund collections for the month totaled $449.1 million. They were also $37.8 million or 9.2% greater than July 2017.
Gross production tax collections on oil and gas totaled $26.1 million but like the general revenue fund, were also below the estimate. The collections were $1.6 million or 5.7% under the estimate but were $8.5 million or 48.1 percent above the previous year.
A breakdown showed natural gas collections of $19.3 million were $2.4 million or 11.2 percent under the estimate. But for the fiscal year, they were $4.2 million or 21.7% above the previous year.
Oil collections of $6.8 million were $850,000 or 14.2% over the estimated and $4.3 million or 168.5% greater then the previous year.
“Historically, July isn’t the strongest month for collections, but we expected to make the estimate,” said Office of Management and Enterprise Services Director Denise Northrup. “While I’m not overly concerned by the July receipts, there are still some hurdles that we need to clear before we see numbers that are in line with where we were before the economic downturn.”
Sales tax collections came in just above the estimate at $161.7 million and were $3.7 million, or 2.4 percent, above the estimate and $11.6 million, or 6.7 percent, below the prior year. Gross production tax collections of $26.1 million missed this month’s estimate and were $1.6 million, or 5.7 percent, below the estimate and $8.5 million, or 48.1 percent, above the prior year. Additionally, revenues from tax sources other than reported major streams continued to be below the estimate in July by 32 percent.
“Drawing comparisons to reports that do not outline the same data is risky,” stated Northrup. “Policy makers must be cognizant of the difference between the Gross Receipts to the Treasury report issued earlier this month and this report, as these numbers are the only ones directly applicable to the state budgeting process. Structural differences such as off the top apportionments contribute to the disparity between the numbers in the two reports.”
As state government’s main operating fund, the GRF is the key indicator of state government’s fiscal status and the predominant funding source for the annual appropriated state budget. GRF collections are revenues that remain for the appropriated state budget after rebates, refunds and mandatory apportionments. Gross collections, reported by the State Treasurer, are all revenues collected by the state before rebates, refunds and mandatory apportionments.
- Total income tax collections of $190.8 million were $11.7 million, or 6.5 percent, above the estimate and $35.9 million, or 23.2 percent, above the prior year.
Individual income tax collections of $180.8 million were $4.1 million, or 2.3 percent, above the estimate and $25.9 million, or 16.7 percent, above the prior year.
Corporate income tax collections of $10.0 million were $7.5 million, or 303.9 percent, above the estimate. Corporate taxes were zero last July.
- Sales tax collections of $161.7 million were $3.7 million, or 2.4 percent, above the estimate and $11.6 million, or 6.7 percent, below the prior year.
- Motor vehicle tax collections of $18.4 million were $1.2 million, or 6.7 percent, above the estimate and $1.7 million, or 9.9 percent, above the prior year.
- Other revenue collections of $52.1 million were $24.5 million, or 32.0 percent, below the estimate and $3.3 million, or 6.8 percent, above the prior year.