October revenue continues positive trend, tops prior year and estimate

CapitolBeatOK Staff Report

Published: 09-Nov-2010

Note: This release sent to CapitolBeatOK today (Tuesday, November 9) is the monthly state revenue report sent from the office of state Treasurer Scott Meacham. 

Revenue collections for October topped prior year collections and the estimate for a second consecutive month, State Treasurer Scott Meacham announced.

Preliminary reports show General Revenue Fund collections in October were $383.8 million. That amount is:

       * $9.4 million or 2.5 percent above the prior year; and,

       * $13.7 million or 3.7 percent above the estimate.

Meacham said monthly collections have been greater than collections in the same month of the prior year for six consecutive months. “Oklahoma’s recovery from the recession is slow but steady,” he said “Since March, we have exceeded prior year collections in all but one month, and since February we have exceeded the estimate six of the nine months.”

Meacham said low natural gas prices and increased refunds are contributing to lower than estimated gross production tax collections. However, he said personal income tax and sales tax collections are encouraging.

“After several months of declines in withholding taxes, in October withholding collections increased almost eight percent,” Meacham said.

“Sales tax collections, considered by many to be a reflection of consumer confidence, continue to show healthy growth.”

In October, net income taxes, a combination of personal and corporate income taxes, produced $157.1 million, which is $2.7 million or 1.7 percent below the prior year but $20.2 million or 14.7 percent above the estimate.

Personal income tax collections for the month are $151.9 million.

That is $11.7 million or 8.3 percent above the prior year and $26.3 million or 20.9 percent above the estimate. Corporate income tax collections for October are $5.3 million, which is $14.4 million or 73.2 percent below the prior year and $6.1 million or 53.6 percent below the estimate.

Month-to-month variances in corporate income tax collections are not unusual.

The state sales tax produced $134.2 million for the month, which is $16.7 million or 14.2 percent above the prior year and $8.5 million or 6.8 percent above the estimate.

The gross production tax on natural gas yielded $22 million for the month, which is $1.6 million or 7 percent below the prior year and $13.5 million or 38 percent below the estimate.

Motor vehicle taxes produced $13.1 million in October, which is $2.1 million or 18.9 percent above the prior year and $1.1 million or 8.8 percent above the estimate.

Other revenue, including investment earnings and taxes on insurance, alcoholic beverages and others produced $57.4 million in October. This is $5 million or 8 percent below the prior year and $2.6 million or 4.3 percent below the estimate.

Year-to-date collections continue to exceed the prior year and estimate. Preliminary reports show collections have produced $1.56 billion, which is $84.2 million or 5.7 percent above the first four months of the prior fiscal year and $59.1 million or 3.9 percent above the estimate.