State: Year-to-date collections continue to beat estimate

State: Year-to-date collections continue to beat estimate

OKLAHOMA CITY — General Revenue Fund collections in January were $714.5 million and came in at $58.1 million, or 8.8 percent, above the monthly estimate. This amount is $118.5 million, or 19.9 percent, above collections in January of 2018. Total collections over the first seven months of the fiscal year are $203.7 million, or 5.7 percent, above the estimate to date and $540.6 million, or 16.6 percent, above prior year collections. 

GNP App

“Net income tax and net gross production collections both remain strong after seven months, holding at 8 percent and 51.9 percent, respectively, over the current year-to-date estimate,” said Office of Management and Enterprise Services Acting Director John Budd. “The October energy sector downturn has yet to cause significant impact to General Revenue Fund collections, though, and will likely be felt in the remaining months of the fiscal year.” 

Gross production tax collections of $77 million were $38.1 million, or 97.7 percent, above the estimate and $50.2 million, or 187.5 percent, above the prior year. Sales tax collections of $191.3 million were $6.9 million, or 3.5 percent, below the estimate and $4.2 million, or 2.2 percent, above the prior year. Corporate income tax collections of $0.5 million were $8.6 million or 94.5% below the estimate.

“It should also be noted, sales tax and motor vehicle contributions to the GRF both turned negative during January and have remained flat through the fiscal year when compared to the estimate,” said Budd. “The fact that both of these tax categories are underperforming is a trend that we will watch closely.”

John Budd is the acting director of OMES, which issues the monthly GRF reports.

Major tax categories in January contributed the following amounts to the GRF:

  • Total income tax collections of $312.5 million were $29.6 million, or 10.5 percent, above the estimate and $24.4 million, or 8.5 percent, above the prior year. Individual income tax collections of $312.0 million were $38.1 million, or 13.9 percent, above the estimate and $23.9 million, or 8.3 percent, above the prior year. Corporate income tax collections of $0.5 million were $8.6 million or 94.5 percent, below the estimate. Collections from this source were net zero in Jan. of 2018.
  • Sales tax collections of $191.3 million were $6.9 million, or 3.5 percent, below the estimate and $4.2 million, or 2.2 percent, above the prior year.
  • Gross production tax collections of $77.0 million were $38.1 million, or 97.7 percent, above the estimate and $50.2 million, or 187.5 percent, above the prior year. Natural gas collections of $35.9 million were $7.0 million, or 24.1 percent, above the estimate and $13.5 million, or 60.5 percent, above the prior year.  Oil collections of $41.1 million were $31.1 million, or 309.8 percent, above the estimate and $36.7 million, or 825.8 percent, above the prior year.
  • Motor vehicle tax collections of $18.3 million were $0.6 million, or 3.1 percent, below the estimate and $0.4 million, or 2.5 percent, above the prior year.
  • Other revenue collections of $115.4 million were $2.1 million, or 1.8 percent, below the estimate and $39.2 million, or 51.6 percent, above the prior year.

As state government’s main operating fund, the GRF is the key indicator of state government’s fiscal status and the predominant funding source for the annual appropriated state budget. GRF collections are revenues that remain for the appropriated state budget after rebates, refunds, other mandatory apportionments and after sales and use taxes are remitted back to municipalities. In contrast, gross collections, reported by the State Treasurer, are all revenues remitted to the Oklahoma Tax Commission. 

Revenue tables can be viewed on the OMES website: https://omes.ok.gov/pages/january-2019-financial-data-tables

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