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First quarter GRF collections fall slightly below the estimate (PRESS RELEASE)

First quarter GRF collections fall slightly below the estimate (PRESS RELEASE)

Oct. 15, 2019

OKLAHOMA CITY — General Revenue Fund collections in September were $554.3 million and came in at $9.2 million, or 1.7%, above collections in September of 2018. This amount is $36.8 million, or 6.2%, below the monthly estimate. Total GRF collections over the first quarter of fiscal year 2020 were $56.5 million, or 3.9%, above prior year collections for the same period, and $6.4 million, or 0.4%, below the estimate.

“Though gross production collections continue to come in below estimates and the prior year, other sources have largely offset cumulative effects over the first three months of the new fiscal year,” said John Budd, director of the Office of Management and Enterprise Services.

“Even with rig counts at an historic low and natural gas prices declining following a larger than expected inventory buildup, we do see some signs of economic growth,” he said.

Major tax categories in September contributed the following amounts to the GRF:

  • Total income tax collections of $319.6 million were $16.9 million, or 5.6%, above the estimate and $43.4 million, or 15.7%, above the prior year.
  • Individual income tax collections of $251.6 million were $1.4 million, or 0.5%, below the estimate and $28.6 million, or 12.8%, above the prior year.
  • Corporate income tax collections of $68 million were $18.2 million, or 36.6%, above the estimate and $14.8 million, or 27.8%, above the prior year.
  • Sales tax collections of $158.1 million were $0.4 million, or 0.3%, above the estimate and $8.6 million, or 5.7%, above the prior year.
  • Gross production tax collections of $13.4 million were $36.6 million, or 73.2%, below the estimate and $18.4 million, or 57.9%, below the prior year.
  • Natural gas collections of $13.3 million were $22.2 million, or 62.5%, below the estimate and $18.5 million, or 58.1%, below the prior year.
  • Oil collections of $65,000 were $14.5 million, or 99.6%, below the estimate and $46,500, or 248.1%, above the prior year.
  • Motor vehicle tax collections of $2.5 million were $0.6 million, or 32.1%, above the estimate and $13.2 million, or 84.4%, below the prior year.
  • Other revenue collections of $60.8 million were $18 million, or 22.9%, below the estimate and $11.2 million, or 15.5%, below the prior year.

As state government’s main operating fund, the GRF is the key indicator of state government’s fiscal status and the predominant funding source for the annual appropriated state budget. GRF collections are revenues that remain for the appropriated state budget after rebates, refunds, other mandatory apportionments and after sales and use taxes are remitted back to municipalities. In contrast, gross collections, reported by the State Treasurer, are all revenues remitted to the Oklahoma Tax Commission.  

Revenue tables can be viewed on the OMES website: https://omes.ok.gov/pages/september-2019-financial-data-tables

Note on Individual Income Tax and Motor Vehicle Collections: Every month of fiscal year 2020, contributions to the GRF from individual income tax collections and motor vehicle collections will be impacted by changes made by HB1014XX allocating specific motor vehicle and motor fuels tax collections to the ROADS fund and offsetting the distribution from this GR source by an equal amount. This new process will not directly impact revenues, but will cause anomalies in the prior year comparisons presenting as an increase in individual income tax and a decrease in motor vehicle contributions. Additionally, for the first year of these changes, we will experience a disrupted collection pattern in both sources when compared to estimated revenues.

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