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Timing on GPT Oil Collections Push GRF Receipts Far Above Estimate

Dec. 11, 2018

Lagging oil prices not expected to hit GRF until January

OKLAHOMA CITY — General Revenue Fund collections in November were $502.2 million and came in at $75.0 million, or 17.5 percent, above the monthly estimate. This amount is $111.5 million, or 28.6 percent, above collections in November of 2017, which is mostly due to law changes that took effect this year. Total collections over the first five months of the fiscal year are $95.4 million, or 4.0 percent, above the estimate to date and $314.1 million, or 14.6 percent, above prior year collections. 

"Regarding GPT, the lag between production and collections is usually about two months and the November collections reflect prices from September when West Texas Intermediate Crude Oil (WTI) prices averaged $70 per barrel,"  said Office of Management and Enterprise Services Director Denise Northrup. "So the returns we are looking at for this month aren't reflecting the falling oil prices we are seeing right now."

Gross production tax collections of $79.1 million were $43.4 million, or 121.6 percent, above the estimate and $55.7 million, or 237.7 percent, above the prior year. This was largely due to meeting the $150 million cap on specific funds receiving gross production oil collections earlier than estimated. As a result, more revenues were deposited into the GRF this month than originally anticipated. 

Sales tax collections of $187.7 million were $1.1 million, or 0.6 percent, above the estimate and $12.0 million, or 6.9 percent, above the prior year. Corporate income tax contributed nothing to GRF collections, which was anticipated in the estimates because of historically large refunds. 

"The Board of Equalization meets next week which will give us a better picture of the state's fiscal health going into FY 2020," said Northrup. "At this point the year-to-date numbers, as opposed to the monthly comparison, give us a better idea of the state's financial outlook."

Denise Northrup is the director of OMES, which issues the monthly GRF reports.

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

  • Total income tax collections of $117.9 million were $13.5 million, or 12.9 percent, above the estimate and $48,000, or 0 percent, below the prior year. Individual income tax collections of $117.9 million were $13.5 million, or 12.9 percent, above the estimate and $48,000, or 0 percent, below the prior year. Corporate income tax collections were net zero and did not contribute to the total.
  • Sales tax collections of $187.7 million were $1.1 million, or 0.6 percent, above the estimate and $12.0 million, or 6.9 percent, above the prior year.
  • Gross production tax collections of $79.1 million were $43.4 million, or 121.6 percent, above the estimate and $55.7 million, or 237.7 percent, above the prior year.
    Natural gas collections of $34.1 million were $6.2 million, or 22.4 percent, above the estimate and $14.1 million, or 70.4 percent, above the prior year.
    Oil collections of $45.0 million were $37.2 million, or 473.0 percent, above the estimate and $41.6 million, or 1,215.8 percent, above the prior year.
  • Motor vehicle tax collections of $16.0 million were $1.7 million, or 11.6 percent, above the estimate and $1.3 million, or 9.1 percent, above the prior year.
  • Other revenue collections of $101.5 million were $15.3 million, or 17.8 percent, above the estimate and $42.6 million, or 72.2 percent, 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/november-2018-financial-data-tables

Media Contact

Shelley Zumwalt
Director of Public Affairs
405-535-5198 | shelley.zumwalt@omes.ok.gov