Monthly tax collections on Oklahoma oil and gas production took a dip in November for the first time since April reported the State Treasurer on Friday leading Treasurer Randy McDaniel to worry about future collections.
The collections fell below $160 million said McDaniel who also pointed out the gross receipts to the Treasury over the past year set a record high for the sixth consecutive month.
Twelve-month gross receipts through November are $17.36 billion, up by $2.44 billion, or 16.3 percent, from the prior 12 months.
“The overall results continue to be strong,” said Treasurer McDaniel. “While lower fuel prices at the pump are providing needed relief for consumers, the slowdown in demand and drop in commodity prices will impact collections in the future.”
Compared to last November, the economic results for the month are positive. November collections of $1.31 billion are up by $120.9 million, or 10.1 percent, from November 2021. All major revenue streams reflect growth. Sales and use tax collections continue to exceed the rate of inflation, growing 10.5 percent compared to the same month of last year.
The monthly Oklahoma Business Conditions Index fell significantly in November. This index, produced by Creighton University, decreased from 51.3 in October to 39.8. It has not been below 50 since November 2020, indicating a forecast for economic contraction during the next three to six months.
As measured by the Consumer Price Index, the U.S. Bureau of Labor Statistics (BLS) reports the annual inflation rate at 7.7 percent in October. The energy component of the index is up 17.6 percent over the year. The food index rose by 10.9 percent.
The Oklahoma unemployment rate in October was reported as 3.4 percent by the BLS. That is up from 3.2 percent in September. The U.S. jobless rate was listed as 3.7 percent in October, up by two-tenths of a percentage point from September.
November 2022 collections compared to gross receipts from November 2021 show:
- Total monthly gross collections are $1.31 billion, up by $120.9 million, or 10.1 percent.
- Gross income tax collections, a combination of individual and corporate income taxes, generated $369.1 million, up by $32.0 million, or 9.5 percent.
- Individual income tax collections are $351.4 million, an increase of $34.7 million, or 11 percent.
- Corporate collections are $17.7 million, down by $2.8 million, or 13.6 percent.
- Combined sales and use tax collections, including remittances on behalf of cities and counties, total $593.3 million – up by $56.2 million – or 10.5 percent.
- Sales tax collections total $500.4 million, an increase of $43 million, or 9.4 percent.
- Use tax receipts, collected on out-of-state purchases including internet sales, generated $92.9 million, an increase of $13.2 million, or 16.6 percent.
- Gross production taxes on oil and natural gas total $150.7 million, an increase of $35.7 million, or 31.1 percent.
- Motor vehicle taxes produced $67 million, up by $0.4 million, or 0.6 percent.
- Other collections composed of some 60 different sources including taxes on fuel, tobacco, medical marijuana, and alcoholic beverages, produced $134.1 million – down by $3.4 million, or 2.5 percent.
- The medical marijuana tax produced $4.3 million, down by $512,192, or 10.6 percent from November 2021.
Combined gross receipts for the past 12 months compared to the prior period show:
- Gross revenue totals $17.36 billion. That is $2.44 billion, or 16.3 percent, above collections from the previous 12 months.
- Gross income taxes generated $6.03 billion, an increase of $864.2 million, or 16.7 percent.
- Individual income tax collections total $5 billion, up by $646.3 million, or 14.8 percent.
- Corporate collections are $1.03 billion, an increase of $218 million, or 26.7 percent.
- Combined sales and use taxes generated $6.84 billion, an increase of $670.3 million, or 10.9 percent.
- Gross sales tax receipts total $5.8 billion, up by $537.7 million, or 10.2 percent.
- Use tax collections generated $1.05 billion, an increase of $132.6 million, or 14.5 percent.
- Oil and gas gross production tax collections generated $1.94 billion, up by $875.5 million, or 82 percent.
- Motor vehicle collections total $875 million, an increase of $13.2 million, or 1.5 percent.
- Other sources generated $1.67 billion, up by $14.4 million, or 0.9 percent.
- Medical marijuana taxes generated $55.4 million, down by $10.9 million, or 16.4 percent.