State: GRF collections up over first half of fiscal year

OKLAHOMA CITY — General Revenue Fund collections in December were $620.6 million and came in at $50.2 million, or 8.8 percent, above the monthly estimate. This amount is $108.0 million, or 21.1 percent, above collections in December of 2017. Total collections over the first six months of the fiscal year are $145.6 million, or 4.9 percent, above the estimate to date and $442.1 million, or 15.8 percent, above prior year collections. 

“It’s a good sign we are on the positive side of the estimate this month,” said Office of Management and Enterprise Services Acting Director John Budd. “But I think we should be mindful that this month’s report does not yet reflect the effects of falling oil prices. The December collections reflect October production when oil was more than $70.00 per barrel.”

Gross production tax collections of $91.4 million were $52.2 million, or 133.1 percent, above the estimate and $66.9 million, or 272.5 percent, above the prior year. Sales tax collections of $195.0 million were $0.2 million, or 0.1 percent, below the estimate and $10.4 million, or 5.6 percent, above the prior year. For the third month in a row corporate income tax contributed nothing to GRF collections as the state continues to pay for refunds.

“Regarding today’s returns, looking at the six-month year-to-date numbers is probably the most accurate reflection of how the state is doing,” said Budd “Right now we are above the estimate by approximately 5 percent, which is good, but we’ll have to wait and see if it holds.”

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

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

• Total income tax collections of $218 million were $9.6 million, or 4.2 percent, below the estimate and $1.1 million, or 0.5 percent, above the prior year.
  Individual income tax collections of $218.0 million were $6.3 million, or 2.8 percent, below the estimate and $1.1 million, or 0.5 percent, above the prior year.
  Corporate income tax collections were net zero and did not contribute to the total.
• Sales tax collections of $195 million were $0.2 million, or 0.1 percent, below the estimate and $10.4 million, or 5.6 percent, above the prior year.
• Gross production tax collections of $91.4 million were $52.2 million, or 133.1 percent, above the estimate and $66.9 million, or 272.5 percent, above the prior year.
  Natural gas collections of $38.3 million were $8.3 million, or 27.7 percent, above the estimate and $17.7 million, or 85.8 percent, above the prior year.
  Oil collections of $53.2 million were $43.9 million, or 474.6 percent, above the estimate and $49.2 million, or 1,244.7 percent, above the prior year.
• Motor vehicle tax collections of $16.4 million were $0.4 million, or 2.2 percent, below the estimate and $0.4 million, or 2.4 percent, above the prior year.
• Other revenue collections of $99.7 million were $8.2 million, or 8.9 percent, above the estimate and $29.2 million, or 41.3 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.