OKLAHOMA CITY — State Treasurer Randy McDaniel announced that gross treasury receipts show Oklahoma’s economy is doing very well heading into the new year.
January gross receipts of $1.5 billion were up more than 27% from the same month last year. Year-over-year revenue of $15.5 billion represents growth of more than 18% over the prior period.
Treasurer McDaniel said the analysis shows the reasons behind the numbers include more than the state’s organic economic expansion.
“A growing economy is still at the heart of record revenues, but fed funds and inflation are helping push the numbers up,” McDaniel said. “All of these factors must be considered during this session as proposals impacting future state revenues and expenditures are discussed.”
Federal direct taxpayer payments, as well as assistance to businesses during the pandemic, have significantly boosted economic activity in Oklahoma. Inflation over the past year has pushed prices up an average of 7%, the highest rate since 1982.
The January gross revenue report shows substantial growth across all major revenue streams. Gross production collections jumped 149.5%, combined personal and business receipts increased 28%, and sales taxes increased 18.8%. Motor vehicle collections increased by 6.7%.
Of note are the usage tax collections for the month. Paid on out-of-state purchases, including internet sales, January use tax revenue topped $100 million for the first time in state history and jumped 13.9 %. Use tax collections have steadily increased since the US Supreme Court’s Wayfair decision in June 2018, which paved the way for easier collection of taxes on Internet sales.
Year-over-year collections increased $2.38 billion, or 18.1%, from the prior 12 months, with the top four revenue streams showing an expansion of 108.1% in gross production receipts to 12 .7% motor vehicle taxes.
Oklahoma’s Business Conditions Index for January predicts continued economic growth in the new year. The January index was pegged at 59.6, down from 70.3 in December and 62.4 in November. However, numbers above 50 indicate an expected expansion over the next three to six months.
Oklahoma’s unemployment rate in December was reported at 2.3% by the US Bureau of Labor Statistics. The state unemployment rate fell 2.5% in November and 4.5% in December 2020. The US unemployment rate was pegged at 3.9% in December.
Compared to the January 2021 gross receipts, the January 2022 collections show:
Total monthly gross collections are $1.51 billion, up $321.5 million, or 27.1%.
Gross income tax receipts, a combination of personal and corporate income taxes, generated $553.5 million, up $121.1 million, or 28%.
Personal income tax collections were $446.4 million, an increase of $64.8 million, or 17%.
Corporate collections are $107.1 million, up $56.3 million, or 110.6%.
Combined sales and use tax collection, including remittances on behalf of cities and counties, totals $597.1 million, up $90.8 million, or 17.9% .
Sales tax revenue totaled $493.2 million, an increase of $78.1 million, or 18.8%.
Use tax revenue, collected on out-of-state purchases, including Internet sales, generated $103.9 million, an increase of $12.7 million, or 13.9%.
Gross taxes on oil and natural gas production totaled $143.5 million, an increase of $86 million or 149.5%.
Motor vehicle taxes generated $68.8 million, up $4.3 million, or 6.7%.
Other collections made up of about 60 different sources, including taxes on fuel, tobacco, medical marijuana and alcoholic beverages, produced $145.5 million, up from $19.3 million. dollars, or 15.3%.
The medical marijuana tax generated $4.9 million, down $301,019, or 5.8% from January 2021.
Twelve Month Collections
The combined gross receipts for the last 12 months compared to the previous period show:
Gross revenues total $15.5 billion. That’s $2.38 billion, or 18.1%, above prior period collections.
Gross income taxes generated $5.34 billion, an increase of $609.2 million, or 12.9%.
Personal income tax collections totaled $4.45 billion, up $372.1 million, or 9.1%.
Corporate collections are $887.1 million, an increase of $237.1 million, or 36.5%.
Sales and use taxes combined generated $6.36 billion, an increase of $882.5 million, or 16.1%.
Gross sales tax revenue totaled $5.42 billion, up $736.2 million, or 15.7%.
User tax collection generated $944.6 million, an increase of $146.2 million, or 18.3%.
Gross oil and gas production tax revenue generated $1.25 billion, up $647.7 million, or 108.1%.
Motor vehicle collections totaled $872.7 million, an increase of $98.5 million, or 12.7%.
Other sources generated $1.68 billion, up $141.5 million, or 9.2%.
Medical marijuana taxes generated $65.9 million, up $7.7 million, or 13.2%.