OKLAHOMA CITY — Gross tax receipts for June gave some indication of a recovery from the COVID-19 downturn, state Treasurer Randy McDaniel said Thursday.
“The state economy showed strength in a number of key areas last month,” McDaniel said in a news release. “However, the large drop in gross production tax receipts due to a decline in global demand shines a light on the challenges faced by a key Oklahoma industry,” oil and gas.
June gross receipts totaled $1.1 billion, which was $56.4 million or 4.9% below the same month a year ago. Collections were off 31.8% in April and 14% in May.
Gross tax receipts are all taxes paid to the state treasury, including those collected on behalf of local governments — chiefly sales and use taxes — and money later returned to taxpayers through refunds and rebates.
June’s gap could be completely attributed to the collapse of oil and gas taxes, which were off by $72.5 million or nearly 80%. McDaniel noted that oil and gas taxes paid in June were for April sales, when prices were at or near bottom.
Oil and gas taxes are a relatively small component of overall state revenue but are viewed as an important leading economic indicator.
June income and sales tax receipts, the two major sources of revenue for state government, combined for a slight increase from the same month a year ago.
Income tax receipts were up slightly because of an uptick in business tax payments.
Sales and use taxes, which are the major revenue sources for municipalities, were essentially the same as a year ago, but only because of the continued growth of the much smaller use tax category.
Sales taxes were down almost 2% from a year ago.
Motor vehicle taxes were up 12%, or $8.1 million, and the “other” category, which includes alcohol, fuel and medical marijuana taxes, was virtually unchanged from last June.