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Monday, October 5, 2020
OKLAHOMA CITY – Three of the state’s four major revenue streams show contraction in September’s Gross Receipts to the Treasury report, similar to the picture seen in total collections during the past 12 months, State Treasurer Randy McDaniel announced on Tuesday.
September receipts from all sources total $1.15 billion, down by almost $8 million, or just less than one percent, from September of last year. Over the past year, gross receipts total $13.26 billion, down by some $468 million, or 3.4 percent, compared to the previous 12-months.
“Considering the major challenges the state faces, Oklahoma’s economy has been weathering the pandemic-driven downturn relatively well,” said Treasurer McDaniel. “We still have reasons for concern in the months ahead, but the perseverance reflected in the September report is encouraging.”
Gross receipts from combined sales and use tax, oil and gas production, and motor vehicle taxes are down by a total of $40.2 million. The extraction tax on oil and gas accounts for the lion’s share with a $27.4 million reduction.
The gross production tax, the state’s severance tax on oil and natural gas, is well below collections from the prior year for a thirteenth consecutive month. Oil and gas prices remain depressed, while drilling activity and oil field employment levels are at historic lows.
Combined individual and corporate income tax receipts are the lone bright spot, up by $21.9 million, or 5.1 percent, for the month. However, the influx of withholding taxes from unemployment payments appears to be having a noteworthy impact on the bottom line.
Other economic indicators
The Oklahoma Business Conditions Index in September remained above growth neutral for a fourth month, following three months of numbers indicating economic contraction. The September index was set at 58.6, down from 61.8 in August. Numbers above 50 indicate economic expansion is expected during the next three to six months.
The unemployment rate in Oklahoma was reported as 5.7 percent in August, down from 7.1 percent in July. The seasonally adjusted number of Oklahomans listed as jobless was reported as 104,800, according to figures released by the U.S. Bureau of Labor Statistics. The U.S. unemployment rate was listed at 8.4 percent in August.
September collections
Compared to gross receipts from September 2019, collections in September 2020 showed:
Twelve-month collections
Combined gross receipts for the past 12 months (October 2019 through September 2020) compared to the prior 12 months showed:
About Gross Receipts to the Treasury
The monthly Gross Receipts to the Treasury report, developed by the state treasurer’s office, provides a timely and broad view of the state’s economy.
It is released in conjunction with the General Revenue Fund report from the Office of Management and Enterprise Services, which provides information to state agencies for budgetary planning purposes.
The General Revenue Fund, the state’s main operating account, receives less than half of the state’s gross receipts with the remainder paid in rebates and refunds, remitted to cities and counties, and apportioned to other state funds.
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For more information:
Tim Allen, Deputy Treasurer for Communications & Program Administration
(405) 205-4929