With the help of a more than 300% increase in oil and gas gross production tax revenue, Oklahoma’s expanding economy pushed Gross Receipts to the Treasury into record high territory for both 12-month revenue and June collections, State Treasurer Randy McDaniel announced Wednesday.
The gross production taxes on oil and natural gas totaled $79.7 million in the month of June, an increase of $60.1 million or 305.8%.
The state’s fiscal year ended June 30 and the oil and gas gross production tax collections totaled $754.3 million, down by $74.9 million or 9%.
Total receipts of $14.32 billion during fiscal year 2021 are the highest on record during any 12-month period in Oklahoma history. Collections of $1.54 billion from the past month are the highest for any June.
“Positive economic news of this magnitude is reassuring,” State Treasurer Randy McDaniel said. “The economic picture in Oklahoma is still developing, but it’s clearly much improved from where we were a year ago during the depths of the pandemic.”
The substantial increase in gross receipts can be attributed to growth in economic activity along with some non-economic factors, including more than $10 billion in direct federal payments to Oklahomans in response to the pandemic and the timing of income tax payment deadlines.
Last year’s income tax deadline was delayed from April to July, so it’s included in the current 12-month report along with payments due this year. In addition, June receipts are boosted by the change in this year’s income tax payment deadline from April to June. Total income tax collections are up by more than 21 percent for the fiscal year and 73 percent for the month.
McDaniel said oil and gas gross production tax collections show the biggest percentage increase of all major revenue sources for the month. Gross production receipts of $79.7 million are up by more than 300 percent from June of last year when payments were at a record low due to depressed oil prices.
Other indicators
The Oklahoma Business Conditions Index expanded its growth in June. The monthly index was set at 73.6, up from 68.9 in May. Numbers above 50 indicate economic expansion is expected during the next three to six months.
The May unemployment rate in Oklahoma was reported as 4.0 percent by the U.S. Bureau of Labor Statistics. The state’s jobless rate was down from 4.1 percent in April and from 9.5 percent in May 2020. The U.S. unemployment rate was set at 5.8 percent in May.
June collections
Compared to gross receipts from June 2020, collections in June 2021 show:
- Total monthly gross collections are $1.54 billion, up $440.2 million, or 40.2 percent.
- Gross income tax collections, a combination of individual and corporate income taxes, generated $704.9 million, up by $297.6 million, or 73.1 percent.
- Individual income tax collections are $519.5 million, an increase of $193.3 million, or 59.3 percent.
- Corporate collections are $185.4 million, up by $104.3 million, or 128.6 percent.
- Combined sales and use tax collections, including remittances on behalf of cities and counties, total $523.9 million – up by $53.1 million, or 11.3 percent.
- Sales tax collections total $453.3 million, an increase of $48.4 million, or 12 percent.
- Use tax receipts, collected on out-of-state purchases including internet sales, generated $70.6 million, an increase of $4.7 million, or 7.1 percent.
- Motor vehicle taxes produced $85.9 million, up by $10.3 million, or 13.6 percent.
- Other collections composed of some 60 different sources including taxes on fuel, tobacco, medical marijuana, and alcoholic beverages, produced $140.7 million – up by $19.1 million, or 15.7 percent.
- The medical marijuana tax produced $6 million, up by $475,893, or 8.6 percent from June 2020.
Twelve-month collections
Combined gross receipts for past 12 months compared to the trailing 12 months show:
- Gross revenue totals $14.32 billion. That is $1.3 billion, or 10 percent, above collections from the previous period.
- Gross income taxes generated $5.32 billion, an increase of $945.1 million, or 21.6 percent.
- Individual income tax collections total $4.44 billion, up by $577 million, or 14.9 percent.
- Corporate collections are $879.1 million, an increase of $368.1 million, or 72 percent.
- Combined sales and use taxes generated $5.82 billion, an increase of $347.2 million, or 6.3 percent.
- Gross sales tax receipts total $4.96 billion, up by $231.3 million, or 4.9 percent.
- Use tax collections generated $858.7 million, an increase of $115.9 million, or 15.6 percent.
- Motor vehicle collections total $822.3 million, an increase of $38 million, or 4.9 percent.
- Other sources generated $1.6 billion, up by $49.2 million, or 3.2 percent.
- Medical marijuana taxes generated $66.1 million, up by $23.7 million, or 55.9 percent
Source: press release