Oklahoma Treasurer Randy McDaniel is out with his monthly Oklahoma Economic Report and again lays out how the state’s tax revenues saw only “moderate” growth in September. Something, he attributes in part to the state’s oil and gas slowdown.
But McDaniel also discusses the state’s “use tax” which he says is “quickly becoming a significant revenue source” for the state. The Treasurer stated that the use tax generated $684.8 million in gross collections in Fiscal Year 2019, which was 36 percent more from the 2018 Fiscal Year. It was also 32 percent more than gross receipts from the corporate income tax.
McDaniel explained that about 55 percent of use tax collections are kept by the state with the remainder distributed to counties and municipalities. The use tax is a sales tax owed on out-of-state purchases that are shipped to the buyer. It is the same rate as the sales tax in an effort to ensure uniformity of taxation and to prevent tax avoidance by the purchase of items from another state with lower or no sales tax.
Click here to read the monthly report.