State revenue levels out but still hits record high for May

Gross revenue to the treasury edged above $1.3 billion in May, up 5% from the record $1.24 billion collected in May 2021. Last month’s total is 21% above pre-pandemic May 2019.

The 2019 comparison is also significant because it was the last year before 2022 with the customary April 15 deadline for state income tax payments.

McDaniel noted that May revenue increased more slowly than inflation.

“While unemployment remains low, equity returns have not recovered, and inflation is taking a toll on everyone,” McDaniel said.

May results were also lower because of the return to regular income tax deadlines, he said.

Income tax rates are lower than a year ago, too, although it is unclear how much, if any, that affected collections.

Gross revenue received by the treasury is all taxes paid to the state, including those collected on behalf of local governments and money returned to taxpayers in the form of rebates and refunds.

Higher fuel prices, while a bane to consumers at the pump, continued to benefit royalty owners and the state treasury in May. Oil and gas taxes totaled $161.2 million, up 86% from the same month a year ago.

Corporate and individual income taxes totaled $357 million, off $47.1 million from the same month a year ago, when the tax deadline was in June.

Sales and use taxes were each up about 6%, to $565.7 million. Much of that will wind up with local governments, which depend on those taxes for operating revenue.

Motor vehicle taxes rose 5.5%, to $75.2 million.

“Others,” a category that includes more than 60 lesser taxes, including medical marijuana, alcohol and fuel taxes, totaled $141 million, which was down slightly from the same month a year ago.

Since 2019, gross income tax revenue is up 17%, sales and use tax revenue 21%, gross production taxes 73% and motor vehicle taxes 19%. Other taxes are flat.