Miller touts positive signs in state government revenues for June

Despite cautious words about national political tensions, and the possibility that the debt ceiling stalemate could trigger bad economic news for Oklahoma, state Treasurer Ken Miller was generally upbeat about Oklahoma’s government revenue trends and overall economic trends.

Treasurer Miller pointed to two recent reports that underscore the positive revenue trend on the outlook for the state economy.

The state’s unemployment rate dropped again in May to 5.3 percent. One year ago, state unemployment stood at 7.1 percent. National unemployment in May was 9.1 percent. “At nearly four percentage points below the national unemployment rate, Oklahoma’s job market is not where it needs to be, but is exceptional on a relative basis,” Miller commented.

Miller said a recent report commissioned by the U.S. Conference of Mayors and prepared by economic forecasters IHS Global Insight also paints a bright outlook for Oklahoma.

“The report predicts some U.S. metropolitan areas will not reach pre-recession levels until 2020, but says Oklahoma’s three metro areas will fare much better,” he said.

According to the report, the Lawton area should fully recover within the next year; Oklahoma City during 2013 and Tulsa in 2014.

June Collections Up By More than 15 Percent

The revenue report for June shows gross collections topped $1 billion – $1.001 billion, up $134.53 million or 15.5 percent from June of last year.

Net income tax collections, a combination of personal and corporate income taxes, generated $373.98 million, an increase of $63.47 million or 20.4 percent from the previous June.

Personal income tax collections for the month are $283.86 million, up $35.87 million or 14.5 percent from the prior year. Corporate collections are $90.12 million, an increase of $27.6 million or 44.1 percent.

Sales tax collections, including remittances on behalf of cities and counties, total $322.69 million in June. That is $19.64 million or 6.5 percent above June of last year.

Gross production taxes on oil and gas generated $102.53 million in June, an increase of $22.7 million or 28.4 percent from last June. Compared to May reports, gross production collections are up $6.91 million or 7.2 percent.

Miller said gross production collections are expected to be lower in the coming months, as current collections reflect drilling activity from a few months ago when oil prices topped $100 per barrel. Prices have since dropped below the century mark.

Motor vehicle taxes produced $65.83 million, up by $8.01 million or 13.9 percent from the prior year.

Other collections, consisting of about 60 different sources including taxes on fuel, tobacco, horse race gambling and alcoholic beverages, produced $136.39 during the month. That is $20.71 million or 17.9 percent higher than last June.

Twelve-month Collections Grow

In the past 12 months, gross revenue totals $10.205 billion. That is $733.81 million or 7.7 percent higher than the 12-month period ending in June 2010.

Net income taxes generated $3.496 billion for the 12 months, reflecting an increase of $230.09 million or 7 percent from the trailing 12 months.

Personal income tax collections total $3.047 billion, up by $137.93 million or 4.7 percent from the prior 12 months. Corporate collections are $449.19 million for the period, an increase of $92.16 million or 25.8 percent over the previous 12 months.

Sales taxes for the period generated $3.714 billion, an increase of $293.77 million or 8.6 percent from the prior 12-month period.

Oil and gas gross production tax collections brought in $978.17 million during the 12 months, up by $109.04 million or 12.5 percent from the previous period.

Motor vehicle collections total $638.24 million for the period. This is an increase of $57.57 million or 9.9 percent from the trailing 12 months.

Other sources generated $1.378 billion, up $43.34 million or 3.2 percent from the previous period