Oklahoma’s rebounding economy lifted gross receipts to its Treasury to record territory for the fiscal year and for collections in June, State Treasurer Randy McDaniel reported.
Receipts of $14.32 billion during fiscal year 2021, which ended June 30, are the highest on record during any 12-month period in Oklahoma history, McDaniel said.
Collections of $1.54 billion from the past month are the highest for any June.
“Positive economic news of this magnitude is reassuring,” McDaniel said. “The economic picture in Oklahoma is still developing, but it’s clearly much improved from where we were a year ago during the depths of the pandemic.”
Surging gross receipts are due to growth in economic activity along with some non-economic factors, including more than $10 billion in direct federal payments to Oklahomans in response to the pandemic. Another factor is the timing of income tax payment deadlines, McDaniel said.
Last year’s income tax deadline was delayed from April to July, so it was included in the current 12-month report along with payments due this year.
June receipts are boosted by the change in this year’s income tax payment deadline from April to June. Total income tax collections rose more than 21% for the fiscal year and 73% for the month.
McDaniel said oil and gas gross production tax collections show the biggest percentage increase of all major revenue sources for the month. Gross production receipts of $79.7 million are up by more than 300% from June of last year when payments were at a record low due to depressed oil prices.
The Oklahoma results echo those of neighboring Texas, which also reported record revenues for the month and a rebound in oil and gas income.
The Oklahoma Business Conditions Index expanded its growth in June, McDaniel said. The monthly index was set at 73.6, up from 68.9 in May. Numbers above 50 indicate economic expansion is expected during the next three to six months.
The May unemployment rate in Oklahoma was reported as 4% by the U.S. Bureau of Labor Statistics. The state’s jobless rate was down from 4.1% in April and from 9.5% in May 2020. The U.S. unemployment rate was set at 5.8% in May.
Gross income tax collections, a combination of individual and corporate income taxes, generated $704.9 million in June, up by $297.6 million, or 73%. For the fiscal year, they were up nearly 22%.
Combined sales and use tax collections, including remittances on behalf of cities and counties, totaled $523.9 million in June, a 11% increase. For the year, they were up 6%.
Gross production taxes on oil and natural gas of $79.7 million in June represented an increase of 305.8% for the month. For the year, they were down 9%.
Motor vehicle taxes produced $85.9 million, up nearly 14% for the month. For the year, they were up nearly 5%.