Gross Receipts to the Oklahoma Treasury jump by more than 12 percent in November
Published: December 9th, 2017
Oklahoma City – November Gross Receipts to the Treasury are more than 12 percent higher than the same month of last year, extending to eight the number of consecutive months with year-over-year growth, State Treasurer Ken Miller announced this past week.
At $893.4 million, November collections are up by 12.4 percent, or $98.6 million, compared to receipts from November 2016. The last time monthly gross receipts grew by more than 12 percent was in February 2012.
“Gross Receipts to the Treasury, insomuch as they indicate general economic activity, paint an encouraging picture as we enter the holiday period,” Miller said. “Sales tax collections, a measure of consumer confidence, are up by double-digits and the bulk of holiday shopping including Black Friday is not yet measured with this report.”
Sales tax receipts grew by 11.4 percent in the November report. The three other major revenue streams – gross income, gross production, and motor vehicle taxes – also increased during the month compared to November of last year.
Gross Receipts to the Treasury for the past 12 months are up by 4.7 percent compared to the prior 12 months with all major revenue sources showing growth.
New revenue collections
The tax commission attributes $24.4 million in November to new revenue resulting from legislation enacted during the last regular session. The largest amount, $10.4 million, is from a 1.25 percent state sales tax on motor vehicle purchases. A $5 fee on motor vehicle registration increased collections by $1.8 million for the month.
The amount of new revenue generated in November by boosting the 1 percent horizontal drilling gross production tax rate to 4 percent is reported as $7.8 million by the tax commission. Elimination and suspension of gross production rebate payments added approximately $3 million to gross collections during the month.
Ending a discount for businesses that remit sales tax added $1.3 million during November, and a new fee assessed on professional sports tickets contributed $28,613.
Since August, law changes from last session have yielded $90.6 million in new gross revenue.
At 4.4 percent, Oklahoma’s seasonally-adjusted unemployment rate in October was down by one-tenth of a percentage point from the prior month (http://www.www.capitolbeatok.com/reports/giving-thanks-accelerated-growth-in-oklahoma-with-gross-receipts-up-more-than-10-percent), according to figures released by the Oklahoma Employment Security Commission. State jobless numbers improved by one-half of a percentage point over the year. The U.S. jobless rate was set at 4.1 percent for the month. The state unemployment rate has been higher than that of the U.S. for 12 of the past 18 months.
The Oklahoma Business Conditions Index has topped growth neutral for four consecutive months. The November index was set at 60, down from 63 in October. Numbers above 50 indicate anticipated positive economic growth in the next three to six months.
November gross collections total $893.4 million, up $98.6 million, or 12.4 percent, from November 2016.
Gross income tax collections, a combination of personal and corporate income taxes, generated $262.8 million, an increase of $22.8 million, or 9.5 percent, from the previous November.
Individual income tax collections for the month are $252.3 million, up by $19.6 million, or 8.4 percent, from the prior year. Corporate collections are $10.5 million, an increase of $3.3 million, or 45.5 percent. Large swings in monthly corporate tax collections are not uncommon.
Sales tax collections, including remittances on behalf of cities and counties, total $382 million in November. That is $39.1 million, or 11.4 percent, more than November 2016.
Gross production taxes on oil and natural gas generated $52.7 million in November, an increase of $18.7 million, or 54.8 percent, from last November. Compared to October reports, gross production collections are up by $686,000, or 1.3 percent.
Motor vehicle taxes produced $54.5 million, up by $35,114, or 0.1 percent, from the same month of last year.
Other collections, consisting of about 60 different sources including use taxes, along with taxes on fuel, tobacco, and alcoholic beverages, produced $141.4 million during the month. That is $18 million, or 14.6 percent, more than last November.
Gross revenue totals $11.3 billion from the past 12 months. That is $512.5 million, or 4.7 percent, more than collections from the previous 12 months.
Gross income taxes generated $4 billion for the December 2016-November 2017 period, reflecting an increase of $33.8 million, or 0.9 percent, from the December 2015-November 2016 period.
Individual income tax collections total $3.6 billion, up by $85.2 million, or 2.4 percent, from the prior 12 months. Corporate collections are $400.9 million for the period, a decrease of $51.3 million, or 11.3 percent, over the previous period.
Sales taxes for the period generated $4.4 billion, an increase of $193.1 million, or 4.6 percent, from the prior year.
Oil and gas gross production tax collections brought in $520.4 million during the past 12 months, up by $171.8 million, or 49.3 percent, from the previous 12-month period.
Motor vehicle collections total $762 million for the period. This is an increase of $14.7 million, or 2 percent, from the trailing period.
Other sources generated $1.7 billion, up by $99.1 million, or 6.3 percent, from the previous 12 months.
About Gross Receipts to the Treasury
Since March 2011, the Office of the State Treasurer has issued the monthly Gross Receipts to the Treasury report, which provides a timely and broad view of the state’s macro economy.
It is provided in conjunction with the General Revenue Fund allocation report from the Office of Management and Enterprise Services, which provides important information to state agencies for budgetary planning purposes.
The General Revenue Fund receives less than half of the state’s gross receipts with the remainder paid in rebates and refunds, remitted to cities and counties, and placed into off-the-top earmarks to other state funds.