Weak state, local tax revenue growth continues

Gross receipts for December were $1.16 billion, 1.7% more than for the same month a year ago. For the fourth quarter of 2019, gross receipts were 0.5% less than for the same period a year earlier.

Gross receipts are all taxes paid into the state treasury, including those collected on behalf of local governments. As such, they provide a rough picture of cash flows to state and local government.

Gross receipts also include money ultimately returned to taxpayers as refunds and rebates.

“Recent economic trends appear to be primarily related to low oil and gas prices,” McDaniel said in a news release. “We are seeing both a direct and spillover effect on some tax collections due to suppressed energy prices.”

McDaniel said the overall state economy appears sound.

Exploration has declined sharply in the state over the past year. Oil prices pushed above $70 a barrel early Monday, however, on news of heightened unrest in the Middle East.

Gross revenue increased by double digits during the first half of the calendar year before sliding to essentially flat in the last quarter.

Total receipts remained level almost entirely because of continued growth in personal income tax collections, which is generally viewed as a lagging indicator of economic activity.

Oil and gas production receipts have been significantly below the prior year for four consecutive months, while sales tax receipts contracted in six of the past seven months.

Even use tax — essentially a sales tax on goods bought out of state for use in Oklahoma — were down in December after several years of substantial gains.

The Treasurer’s Office attributed the drop in use tax to reduced purchases of drilling and other oil field equipment and materials.

Personal income tax revenue rose 8.6% in December from the previous year and was up 7.2% for the calendar year.

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