Oklahoma Gross Receipts to the Treasury continue to taper off as energy prices decline according to an update provided this week by Treasurer Todd Russ who indicated lower energy prices are clearly impacting the state’s bottom line.
He said the 12-month total in May was $17.48 billion or $146 million less than the high-water mark set in March of $17.64 billion. It was also less than last month’s total of $17.49 billion.
When comparing May 2022 to May 2023, the total receipts decreased $15.6 million, or 1.2 percent. The comparison
of the two months shows a drop in oil and gas production tax revenue of $68 million, or 41.9 percent.
Russ said while lower energy prices are at play, there are other sources of revenue that remain positive.
The U.S. jobless rate remained low at 3.4 percent in April, down by 0.1 of a percentage point from the prior month. Oklahoma’s unemployment rate dipped below 3.0 percent, settling at 2.9 percent for April.
As measured by the Consumer Price Index, the U.S. Bureau of Labor Statistics reports the annual inflation rate ended April at 4.9 percent. The food index continued to remain high at 7.7 percent over the last year, but the energy component of the index decreased by 5.1 percent.
Regional trends indicate some economic uncertainty. For May, the Creighton University Mid-America Business Conditions Index for the nine-state region decreased to 51.3 from 54.8 the previous
month. The Oklahoma component of the index contracted from 54.5 to 44.7 in May, falling below growth neutral.
May collections
May 2023 collections compared to gross receipts
from May 2022 show:
● Total monthly gross collections are $1.28
billion, down by $15.6 million, or 1.2 percent.
● Gross income tax collections, a combination of individual and corporate income taxes, generated $391.1 million, an increase
of $34.1 million, or 9.6 percent.
● Combined sales and use tax collections– including remittances on behalf of cities and counties – total $577.4 million, an
increase of $11.8 million, or 2.1 percent.
● Motor vehicle taxes produced $84.9 million, an increase of $9.7 million, or 12.9 percent.
● Other collections composed of some 60 different sources produced $136.9 million, a decrease of $3.2 million, or 2.3 percent.
● Gross production taxes on oil and natural gas total $94.1 million, a decrease of $68.0 million, or 41.9 percent.
Combined gross receipts for the past 12 months
compared to the prior year show:
● Gross revenue totals $17.48 billion. That is $995.6 million, or 6.0 percent, above collections from the previous 12 months.
● Gross income taxes generated $6.0 billion, an increase of $58.9 million, or 1.0 percent.
● Combined sales and use taxes produced $7.0 billion, an increase of $483.4 million, or 7.4 percent.
● Motor vehicle collections total $885.8 million, up by $3.9 million, or 0.4 percent.
● Other sources generated $1.7 billion, down
by $20.1 million, or 1.2 percent.
● Oil and gas gross production tax collections are $1.91 billion, an increase of $469.5 million, or 32.6 percent.
