FY 2020 First Month GR Collections Send Mixed Messages
OKLAHOMA CITY — General Revenue Fund collections in July were $499.6 million and came in at $31.1 million, or 6.6%, above the monthly estimate. This is $50.5 million, or 11.2%, above collections in July of 2018.
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.
"Although total collections for the first month of the new fiscal year are up compared with both the estimate and prior year, the picture is clouded by a few collection anomalies as well as sluggish gross production revenues," said Office of Management and Enterprise Services Director John Budd. "We will need to get a few more months under our belt to see where we’re headed in FY 2020.
“Gross production collections were below the monthly estimate in June and are below both the estimate and prior year collections this month. Suppressed energy prices and uncertainty in the global economy are clearly impacting this vital Oklahoma sector."
Major tax categories in July contributed the following amounts to the GRF:
- Total income tax collections of $240.8 million were $28.0 million, or 13.2%, above the estimate and $50.0 million, or 26.2%, above the prior year.
Individual income tax collections of $236.8 million were $28.2 million, or 13.5%, above the estimate and $56.0 million, or 31.0%, above the prior year. The prior year comparison was also impacted by an additional reporting period this year when compared to July of 2018.
Corporate income tax collections of $3.9 million were $0.2 million, or 5.0%, below the estimate and $6.1 million, or 60.6%, below the prior year.
- Sales tax collections of $178.7 million were $0.7 million, or 0.4%, above the estimate and $17.0 million, or 10.5%, above the prior year.
- Gross production tax collections of $17.6 million were $3.9 million, or 18.1%, below the estimate and $8.5 million, or 32.5%, below the prior year.
Natural gas collections of $17.6 million were $3.9 million, or 18.1%, below the estimate and $1.6 million, or 8.5%, above the below year.
Oil collections of $120.50 are negligible and were not estimated for the month of July. General Revenue will not receive significant oil collections until the $150 million cap to specified funds is met.
- Motor vehicle tax collections of $3.3 million were $1.3 million, or 61.7%, above the estimate and $15.1 million, or 82.1%, below the prior year.
- Other revenue collections of $59.2 million were $5.0 million, or 9.2%, above the estimate and $7.1 million, or 13.6%, above 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/july-2019-financial-data-tables