In spite of lower oil and gas prices, Gross Receipts to the Treasury have reflected growth in the Oklahoma economy for 23 consecutive months, State Treasurer Randy McDaniel announced Friday.
February receipts of $971.5 million are 10.7 percent higher than collections from the same month of last year.
“Oklahoma’s economic expansion continues, and so far is not showing a major impact from the volatility in energy prices,” Treasurer McDaniel said. “My hope is that during these times of revenue growth, state policymakers will find ways to save for the future needs of our state.”
Receipts from the production of crude oil and natural gas generated $105.7 million in February, up by more than 58 percent from a year ago, before the incentive tax rate was raised. However, February oil and gas collections are also $5.6 million, or 5.6 percent, higher than January receipts, which include the increased incentive tax rate.
February gross production tax payments reflect oil field activity in December, when West Texas Intermediate crude oil at Cushing averaged $49.52 per barrel. Oil prices are down by more than $21 per barrel, or 30 percent, from the most recent peak last July.
In spite of energy price fluctuations, all major revenue streams in February show higher collections than those of a year ago, continuing a growth trend that began in April 2017.
Total collections from the past 12 months are up by more than 12 percent over the prior 12 months and have reached a new record high of almost $13.2 billion. During the past 12 months, all major revenue sources show growth ranging from 4 percent in motor vehicles tax collections to almost 80 percent in gross
Revenue generated by increased tax rates approved in House Bill 1010 during special session last year added $50.7 million to monthly collections, 5.2 percent of all February gross receipts.
The largest amount, $33.1 million, came from the increase in the incentive tax rate on oil and natural gas gross production. Higher tax rates on gasoline and diesel fuel generated $7.1 million, and the $1 per pack hike in cigarette taxes added $10.5 million to February’s total.
The Oklahoma Business Conditions Index has topped growth neutral for 19 consecutive months. The February index was set at 58.1, up from 57.1 in January. Numbers above 50 indicate anticipated economic growth during the next three to six months.
Oklahoma unemployment numbers for January will not be released until March 11 by the Employment Security Commission. The state’s seasonally adjusted unemployment rate of 3.2 percent in December was down by one-tenth of a percentage point from November.
