Boosted by record receipts from oil and gas production, Gross Receipts to the Treasury in February show the state’s economy continues to expand despite ongoing inflationary pressure, State Treasurer Todd Russ announced Wednesday.
Collections for the past year are $17.62 billion, up by 12.9 percent, compared to the 12-month collection total in February 2022 of $15.61 billion. For the first time in any 12-month period, oil and gas gross production taxes topped $2 billion.
February receipts of $1.21 billion are up by 13.4 percent from the same month of last year. The monthly sales and use tax revenues of $528.3 million are the highest February on record.
Gross production taxes on oil and natural gas total $124.6 million, an increase of $35.0 million, or 39.1 percent.
“While inflation remains a major concern, Oklahoma’s economy is benefitting from strong energy prices and low unemployment,” Treasurer Russ said. “In addition, economic activity in the state continues to be robust as reflected in sales and use tax receipts.”
Other indicators
As measured by the Consumer Price Index, the U.S. Bureau of Labor Statistics (BLS) reports the annual inflation rate at 6.4 percent in January. The energy component of the index increased 8.7 percent over the last year, and the food index remained at 10.1 percent.
The U.S. jobless rate was 3.4 percent in January, down by one-tenth of a percentage point from the prior month. While the U.S. Bureau of Labor Statistics is not expected to report the state January unemployment rates until next week, Oklahoma’s employment numbers are expected to continue to show strength. In December, the rate was 3.4 percent.
Regional economic trends have turned positive. The Creighton University Mid-America Business Conditions Index for the nine-state region reached its highest level since last July, after three straight months below growth neutral. The Oklahoma component of the index rose to 54.9 in February – a sharp increase from 43.3 in the previous month.
February collections
February 2023 collections compared to gross receipts from February 2022 show:
- Total monthly gross collections are $1.21 billion, up by $142.8 million, or 13.4 percent.
- Gross income tax collections, a combination of individual and corporate income taxes, generated $367.8 million, up by $49.2 million, or 15.4 percent.
- Individual income tax collections are $341.6 million, an increase of $39.0 million, or 12.9 percent.
- Corporate collections are $26.2 million, up by $10.2 million, or 64.0 percent.
- Combined sales and use tax collections, including remittances on behalf of cities and counties, total $528.3 million – up by $50.1 million – or 10.5 percent.
- Sales tax collections total $450.0 million, an increase of $42.7 million, or 10.5 percent.
- Use tax receipts, collected on out-of-state purchases including internet sales, generated $78.3 million, an increase of $7.4 million, or 10.4 percent.
- Motor vehicle taxes produced $67.5 million, up by $7.7 million, or 12.8 percent.
- Other collections composed of some 60 different sources produced $118.5 million – up by $0.8 million, or 0.7 percent.
Twelve-month collections
Combined gross receipts for the past 12 months compared to the prior period show:
- Gross revenue totals $17.62 billion. That is $2.01 billion, or 12.9 percent, above collections from the previous 12 months.
- Gross income taxes generated $6.1 billion, an increase of $723.1 million, or 13.5 percent.
- Individual income tax collections total $5.1 billion, up by $609.8 million, or 13.6 percent.
- Corporate collections are $1.0 billion, an increase of $113.3 million, or 12.6 percent.
- Combined sales and use taxes generated $6.95 billion, an increase of $565.2 million, or 8.8 percent.
- Gross sales tax receipts total $5.9 billion, up by $448.3 million, or 8.2 percent.
- Use tax collections generated $1.1 billion, an increase of $116.9 million, or 12.3 percent.
- Oil and gas gross production tax collections generated over $2.0 billion, up by $738.5 million, or 57.2 percent.
- Motor vehicle collections total $883.4 million, an increase of $1.7 million, or 0.2 percent.
- Other sources generated almost $1.7 billion, down by $17.4 million, or 1.0 percent.