Sound but moderating. It’s the picture of Oklahoma’s economy described by State Treasurer Todd Russ as he announced that total gross receipts in 2022 to the treasurer rose to a new high.
Oil and natural gas production helped with the increase. The Treasurer’s Office reported gross production tax collections for the year produced $2.02 billion, up 48% or $665.4 million.
However, the March gross production tax collections on oil and gas declined 5.2% or $8.7 million to $156.6 million. That’s a sign of a slowing economy in the state.
The 12-month record total of $17.64 billion is $1.77 billion or 11.2 percent more than the year before. However, when reviewing the monthly comparison, the difference between March and last March of $16.6 million or 1.2 percent is the lowest level of growth seen since June 2022.
“The results continue to reflect an expanding Oklahoma economy,” said Treasurer Russ. “With that said, rising interest rates are adversely impacting economic activity for both consumers and businesses.”
As measured by the Consumer Price Index, the U.S. Bureau of Labor Statistics reports the annual inflation rate at 6.0 percent in February. The energy component of the index increased 5.2 percent over the last year, and the food index remained high at 9.5 percent.
The U.S. jobless rate was 3.6 percent in February, up by 0.2 of a percentage point from the prior month. Oklahoma’s employment numbers continue to show strength. In February, the rate was 3.0 percent, a decrease of 0.1 percent from January.
Regional economic trends remain positive. For March, the Creighton University Mid-America Business Conditions Index for the nine-state region stayed above growth neutral at 50.8. The Oklahoma component of the index rose to 55.3, increasing from 54.9 the previous month.
March 2023 collections compared to gross receipts from March 2022 show:
- Total monthly gross collections are $1.4 billion, up by $16.6 million, or 1.2 percent.
- Gross income tax collections, a combination of individual and corporate income taxes, generated $500.2 million, up by $10.2 million, or 2.1 percent.
- Individual income tax collections total $431.5 million, an increase of $11.4 million, or 2.7 percent.
- Corporate collections are $68.7 million, down by $1.3 million, or 1.8 percent.
- Combined sales and use tax collections, including remittances on behalf of cities and counties, total $556.0 million – up by $29.8 million – or 5.7 percent.
- Sales tax collections are $470.1 million, an increase of $19.6 million, or 4.3 percent.
- Use tax receipts, collected on out-of-state purchases including internet sales, generated $85.8 million, an increase of $10.2 million, or 13.5 percent.
- Gross production taxes on oil and natural gas total $156.6 million, a decrease of $8.7 million, or 5.2 percent.
- Motor vehicle taxes produced $79.2 million, down by $3.3 million, or 4.1 percent.
- Other collections composed of some 60 different sources produced $107.7 million, a decrease of $11.4 million, or 9.5 percent.
Combined gross receipts for the past 12 months compared to the prior period show:
- Gross revenue totals $17.64 billion. That is $1.77 billion, or 11.2 percent, above collections from the previous 12 months.
- Gross income taxes generated $6.1 billion, an increase of $655.1 million, or 12.0 percent.
- Individual income tax collections total $5.1 billion, up by $566.7 million, or 12.5 percent.
- Corporate collections are $1.0 billion, an increase of $88.4 million, or 9.6 percent.
- Combined sales and use taxes are $6.98 billion, an increase of $491.8 million, or 7.6 percent.
- Gross sales tax receipts total $5.9 billion, up by $380.9 million, or 6.9 percent.
- Use tax collections generated $1.08 billion, an increase of $110.9 million, or 11.5 percent.
- Oil and gas gross production tax collections produced $2.02 billion, up by $665.4 million, or 48.0 percent.
- Motor vehicle collections total $880.0 million, a decrease of $4.5 million, or 0.5 percent.
- Other sources generated $1.65 billion, down by $27.7 million, or 1.6 percent.