Declining tax revenue from oil and gas production continues to push total gross receipts revenues down in Oklahoma.
Treasury Secretary Todd Russ reported receipts for the last 12 months total $16.96 billion, a decrease of $480 million, or 2.7 percent, when comparing revenue from the previous year.
All tax sources in December total $1.41 billion. Continuing recent trends, revenue is down $88.3 million, or 5.9 percent, when comparing to December 2022.
Revenue from the state’s Gross Production Tax dropped to $102.9 million, down by 47 percent, when comparing to December 2022.
However, when comparing November and December total month revenues show a rise of $116.2 million, or 8.9 percent.
The Oklahoma Business Conditions Index rebounded in December to a level above growth neutral. The December index came in at 50.5, compared to 43.2 in November. Numbers above 50 indicate the expectation of economic expansion over the next three to six months, but it should be noted that the index has been very volatile in recent months.
According to the U.S. Bureau of Labor Statistics, the unemployment rate in Oklahoma was 3.3 percent for November, a modest uptick from 3.2 percent in October. Meanwhile, the national unemployment rate fell in November to 3.7 percent, down 0.2 percent from the previous month.
As measured by the Consumer Price Index, the U.S. Bureau of Labor Statistics reports the annual inflation rate shrunk slightly to 3.1 percent in November. The energy component of the index continued to show a substantial decline over the year, dropping 5.4 percent below zero inflation, and the food index slipped below the overall inflation rate as well, ending the month at 2.9 percent.
Source: Treasurer’s release