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May revenue collections show recovery continues

May revenue collections show recovery continues

SCOTT MEACHAM
OKLAHOMA STATE TREASURER

For Immediate Release: June 15, 2010

May Revenue Collections Show Recovery Continues


OKLAHOMA CITY
– May revenue collections exceeded prior year collections and the
official estimate, adding another month to the trend of continued improvement in the Oklahoma
economy, State Treasurer Scott Meacham said today. The collections, Meacham said, show
brighter economic times are returning to the Sooner State.

Preliminary reports show General Revenue Fund collections for May were $378.7
million. That amount is:

• $21.6 million or 6 percent above the prior year; and
• $27.5 million or 7.8 percent above the official estimate.

Recovery from Great Recession Continues

Driven by strong collections in Gross Production taxes, May collections topped both the
prior year and estimate for only the second time this fiscal year. Sales tax collections, often
viewed as a reflection of consumer confidence, also showed substantial growth, Meacham said.
Net income taxes remained below the prior year and estimate primarily due to lower estimated
tax payments during the month.

“As we look back at collections throughout the fiscal year, it is becoming more apparent
that our recovery started in February and that trend continues this month.”

Meacham said that with May collections, the Office of State Finance has been able to
repay all the money that was transferred from cash funds to make allocations to state agencies
earlier in the fiscal year. The law requires all the funds to be repaid by June 30, the end of the
fiscal year.

“We have now paid back all $320.9 million of the funds transferred to make allocations
earlier in the year, and, after monthly allocations are made today, we will have a remainder of
$6.7 million,” he said. “The outlook is good as collections in June should exceed spending
requirements and the remaining funds will be used to seed the cash flow reserve fund for use
next fiscal year.”

The cash flow reserve fund is used to help make monthly allocations to state agencies
when monthly revenue collections, which vary greatly from month to month, are insufficient.
During this fiscal year, the cash flow reserve fund was depleted in one month. Typically, the
fund lasts throughout the fiscal year.

For the first 11 months of the fiscal year, collections total $4.122 billion. That is $955
million or 18.8 percent below the prior year and $781 million or 15.9 percent below the official
estimate.

May Collections

In May, net income taxes, a combination of personal and corporate income taxes,
produced $115.3 million, which is $20.6 million or 15.2 percent below the prior year and $22.2
million or 16.1 percent below the estimate.

Personal income tax produced $115.3 million, which is $19.3 million or 14.3 percent
below the prior year and $20.6 million or 15.2 percent below the estimate. After refunds were
paid, corporate income tax collections were recorded as zero. Corporate collections were $1.4
million during May of last year.

The state sales tax produced $131.4 million for the month, which is $8.8 million or 7.1
percent above the prior year and $0.7 million or 0.5 percent above the estimate.

The gross production tax on oil and natural gas yielded $56.2 million for the month,
which is $29 million or 106.5 percent above the prior year and $44.4 million or 377.6 percent
above the estimate.

Motor vehicle taxes produced $11.3 million in May, which is $4.2 million or 26.9 percent
below the prior year and $1.1 million or 9.1 percent below the estimate.

In May, investments by the treasurer’s office yielded $8.9 million. That is $3.3 million
below the same month of the prior year.

Other revenue, including investment earnings along with taxes on insurance, alcoholic
beverages and others produced $64.5 million for the month. This is $8.6 million or 15.4 percent
above the prior year and $5.7 million or 9.7 percent above the estimate.

# # #

For more information contact:
Tim Allen, Deputy Treasurer for Policy and Administration, (405) 522-4212

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