DALLAS - Oklahoma's July revenues fell 5% below collections from the same month last year, marking the third consecutive month and the fourth time in five months the year-over-year comparison has been negative.
Lower collections from taxes on income and on the production of oil and natural gas provided the downward push in July. Combined personal and corporate income taxes shrank by 5.4%, while gross production taxes fell by almost 47%, said State Treasurer Ken Miller.
"The impact of low oil prices continues to make itself known in monthly gross receipts to the Treasury," Miller said. "The resulting increase in unemployment is also something of a factor this month with withholding taxes down by more than 6% from the prior year - accounting for the entire drop in personal income tax collections."
July gross production collections are from oilfield activity in May, when West Texas Intermediate crude oil was selling for about $60 per barrel in Cushing, Okla. Oil prices fell to less than $45 in late January, rebounded slightly and are now at less than $50.
Sales tax and motor vehicle tax collections both showed slight growth in July - up by 0.2% and 0.6%, respectively.
Gross receipts for the past 12 months total $11.93 billion, with a growth rate of 1.4% compared to the prior 12 months. While the rate of growth in 12-month collections has remained positive for almost five years, the current rate is the lowest since November 2010, Miller said.
In the past 12-months, gross production tax collections are down by almost 24%, and motor vehicle collections are off by more than 3%. Remaining growth positive over the 12 months are income tax collections, at 5.2%, and sales tax collections, at 2.5%.
For a third consecutive month, Oklahoma's unemployment rate rose 0.2 percentage points and was set at 4.5% in June. The only sector reporting job losses compared to the prior year was Mining and Logging, which includes the energy sector, down by 5,700, according to state figures. The national unemployment rate was set at 5.3% in June.
Oklahoma City metropolitan unemployment increased 0.5 percentage points to 4.3% in June, while Tulsa's jobless rate rose 0.4 percentage points to 4.8%. Unemployment increased in all but one of the state's 77 counties during June.
The Business Conditions Index for Oklahoma in July remained below growth neutral for a third consecutive month, according to Miller. However, it rose to 48.3 from June's 46.9. Numbers below 50 indicate economic contraction is expected during the next three to six month.
Gross receipts for July were $942.23 million, down $49.98 million or 5% from July 2014.
Gross income tax collections, a combination of personal and corporate income taxes, generated $290.41 million, a decrease of $16.62 million or 5.4% from the previous July.
Personal income tax collections for the month are $275.75 million, down $14.66 million or 5 percent from the prior year. Corporate collections are $14.66 million, down by $1.97 million or 11.8%.
Sales tax collections, including remittances on behalf of cities and counties, total $378.59 million in July. That is $690,000 or 0.2% higher than July 2014.
Gross production taxes on oil and natural gas generated $41.06 million in July, a decrease of $36.1 million or 46.8% from last July. Compared to June reports, gross production collections are up by $5.15 million or 14.3%.
Motor vehicle taxes produced $69.15 million, up by $410,000 or 0.6% from the prior year.
Other collections, consisting of about 60 different sources including taxes on fuel, tobacco, horse race gambling and alcoholic beverages, produced $163.03 million during the month. That is $1.64 million or 1% more than last July.
