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July gross production tax receipts break month-old record

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State and local tax revenue continued a long upward trend last month, still driven by record-setting oil and natural gas gross production taxes, State Treasurer Randy McDaniel said Wednesday.

Income tax revenue and sales and use tax revenue, the state’s two largest revenue sources, were also up, while motor vehicle and the “other” category, which includes medical marijuana, alcohol, fuel and dozens of other lesser taxes, declined.

“Gross production collections are coming in at historic highs, which are driving growth in overall revenue,” McDaniel said in a press release. “Looking ahead, inflation continues to be a major concern, even though we’ve seen some minor relief at the (fuel) pump.”

Gross revenue to the state treasury for July totaled $1.38 billion, which was 13.3% more than for the same month a year ago. Oil and gas taxes accounted for $187.2 million, breaking by $16 million the one-month record set in June.

McDaniel noted that the most recent oil and gas tax receipts are from May production, when West Texas intermediate crude hit $109.55 per barrel and natural gas traded for as much as $8.14 per million BTU. On Wednesday, West Texas intermediate was trading at around $81 a barrel, and natural gas was at $7.77.

Revenue to the treasury has exploded in the past year following the sharp downturn during the worst of the COVID-19 pandemic. Over the past 12 months — July 1, 2021, to this June 31 — gross revenue totaled $16.62 billion, a nearly 18% increase over the previous 12-month period.

Gross revenue includes all taxes paid to the state treasury, including those collected on behalf of local governments and money returned to taxpayers as refunds and rebates. In that regard, gross revenue is also a broad measurement of local governments’ sales and use tax receipts.

State income tax receipts for July were $372.1 million, a 5.5% increase over the same month a year ago. State and local sales and use taxes amounted to $590.1 million, an 8.1% rise.

Those advances are tempered by inflation rates that have topped 9% year-over-year.

Motor vehicle revenue for the month was $77.2 million, down 5%, and other taxes accounted for $151.4 million, down 1.8%.

Within the other category, medical marijuana taxes amounted to $4.2 million, down 25% from the same month a year ago.

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