August 2019 collections increase slightly over estimate
OKLAHOMA CITY — General Revenue Fund collections in August were $451.4 million and came in at $2.8 million, or 0.6%, above the monthly estimate. This amount is $3.2 million, or 0.7%, below collections in August of 2018.
“For the second month of the new fiscal year, gross production collections to the GRF have fallen below both the estimate and prior year collections,” said John Budd, Office of Management and Enterprise Services director. “This is concerning.
“Fortunately, to this point other revenue sources have offset the lower collections and our total year-to-date GRF collections are holding at 3.3% above the estimate."
Major tax categories in August contributed the following amounts to the GRF:
- Total income tax collections of $180.9 million were $7.5 million, or 4.0%, below the estimate and $23.4 million, or 14.8%, above the prior year.
Individual income tax collections of $179.2 million were $3.9 million, or 2.1%, below the estimate and $21.7 million, or 13.8%, above the prior year.
Corporate income tax collections of $1.7 million were $3.6 million, or 68.2%, below the estimate. Corporate income tax was net zero last August.
- Sales tax collections of $167.0 million were $4.0 million, or 2.5%, above the estimate and $10.1 million, or 6.4%, above the prior year.
- Gross production tax collections of $15.4 million were $7.8 million, or 33.7%, below the estimate and $11.7 million, or 43.2%, below the prior year.
Natural gas collections of $15.3 million were $7.9 million, or 33.9%, below the estimate and $5.4 million, or 26.2%, below the prior year.
Oil collections of $39,000 are negligible and were not estimated for the month of August. General Revenue will not receive significant oil collections until the $150 million cap to specified funds is met.
- Motor vehicle tax collections of $2.4 million were $0.4 million, or 17.2%, above the estimate and $15.3 million, or 86.3%, below the prior year.
- Other revenue collections of $85.7 million were $13.7 million, or 19.0%, above the estimate and $9.7 million, or 10.1%, 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/august-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.