State Treasurer Ken Miller reports some spectacular economic news again, this month. State revenue (tax & fee collections) are way up, again. 15% higher than where they were at the same time last year. This means that the "Tobacco Cessation Fee" wasn't even needed (it was struck down as a violation of the OK Constitution).
Further, T=the special sessions were all just a reaction to a fake funding shortfall. We're not saying they lied to us; but they were very wrong nonetheless.
If Oklahoma govt. had done nothing, we would have been far better off. Our tax rates were far more than needed to fund the full appropriations to each agency, at the rates specified last May in the 2017 regular session. Our legislature wasted the members' time and did nothing to improve the economic picture for the agencies.
What the leaders did accomplish is a massive level of strife and division. And it was all done needlessly. Even in the February 2nd special session, the Oklahoma Crony Capitalists pushed a ridiculous tax increase called "Step Up" (or Screw Up, if you ask some opponents). Even as that scheme was facing a first floor vote, the state treasurer was reporting a massive flood of new money which came in over the previous 6 months.
The chamber's scheme failed. Eventually and reluctantly the legislature adjusted the agency budgets downward by less than 2%. But even that series of cuts weren't needed. Our people were paying in more than enough to fund this current fiscal year budget.
To put it simply, we are collecting 3 times the added money that we thought the new tax increase, itself, would provide. So even if the voters reject the tax increase, we still have roughly double the new money needed to pay the teachers their raises and fully fund the new fiscal year, which starts in July. Any teacher who demagues this point is nothing more than a closet socialist pawn for oppressively large govt.
When the 41,000 signatures for a veto referendum of the taxes are certified, the state will be ordered to cease collecting the new taxes until a vote of the people is completed. But that will not prevent the teachers from getting their pay raise. Why? Because the pay raise was approved by a separate piece of legislation. If state bureaucrats suspend the pay raises pending a state question, the teachers are advised to be ready to file a court action. Because the only reason to suspend those pay raises is because the bureaucrats choose to hold the teachers as hostages for more oppressive and regressive taxes on the productive working people of the state.
Thursday, May 3, 2018
April Gross Receipts to the Treasury Grow by Double Digits
Charts and graphs
OKLAHOMA CITY – April Gross Receipts to the Treasury are up by more than 15 percent compared to the same month of the prior year as monthly gross collections have consistently shown growth for 13 months, State Treasurer Ken Miller announced today.
Receipts in all revenue major streams show increases ranging from more than 47 percent in gross production taxes to 1 percent in motor vehicle tax collections.
“This month’s gross receipts report again reflects a well performing economy,” said Miller. “Employment and consumption are continuing to rise as the energy sector is hitting stride.”
The April report, at $1.4 billion, is one of the largest of the year due to the income tax filing deadline. Individual and corporate income tax collections account for more than 50 percent of total receipts for the month.
Collections from the past 12 months compared to the previous period also show growth in all major revenue streams. Total 12-month collections, at $11.97 billion, are up by $1.18 billion, or 10.9 percent.
New revenue collections
The tax commission attributes $34.6 million in April to new revenue resulting from legislation enacted during 2017. The additional revenue comes primarily from changes in sales tax exemptions and gross production tax incentives.
The new revenue accounts for 2.5 percent of April gross receipts. Out of $9.2 billion in gross collections since last August, $240.8 million, or 2.6 percent, has resulted from last year’s law changes.
Tax increases enacted in late March of this year have not yet taken effect and therefore have no impact on current collections.
The Oklahoma Business Conditions Index has topped growth neutral for nine consecutive months. The April index was set at 62.7, up from 62.4 in March. Numbers above 50 indicate anticipated economic growth during the next three to six months.
At 4 percent, Oklahoma’s seasonally adjusted unemployment rate in March notched down by one-tenth of a percentage point from February and was one-half of a percentage point less than in March 2017, according to figures released by the Oklahoma Employment Security Commission. It marks the first time since September that Oklahoma’s jobless rate has been less than the U.S. rate, which remained at 4.1 percent in March.
April gross collections total $1.4 billion, up $187 million, or 15.4 percent, from April 2017.
Gross income tax collections, a combination of individual and corporate income taxes, generated $709.1 million, an increase of $106.7 million, or 17.7 percent, from the previous April.
Individual income tax collections for the month are $586.6 million, up by $57.6 million, or 10.9 percent, from the prior year. Corporate collections are $122.6 million, an increase of $49.15 million, or 66.8 percent.
Sales tax collections, including remittances on behalf of cities and counties, total $410.6 million in April. That is $43.7 million, or 11.9 percent, more than April 2017.
Gross production taxes on oil and natural gas generated $60.7 million in April, an increase of $19.5 million, or 47.4 percent, from last April. Compared to March reports, gross production collections are down by $12.1 million, or 16.7 percent.
Motor vehicle taxes produced $62.8 million, up by $627,510, or 1 percent, from the same month of 2017.
Other collections, consisting of about 60 different sources including use taxes, along with taxes on fuel, tobacco, and alcoholic beverages, produced $160.4 million during the month. That is $16.5 million, or 11.5 percent, more than last April.
Twelve month collections
Gross revenue totals $11.97 billion from the past 12 months. That is $1.18 billion, or 10.9 percent, more than collections from the previous 12 months.
Gross income taxes generated $4.2 billion for the period, reflecting an increase of $342.6 million, or 8.8 percent, from the prior 12 months.
Individual income tax collections total $3.8 billion, up by $257 million, or 7.3 percent, from the prior 12 months. Corporate collections are $464.4 million for the period, an increase of $85.5 million, or 22.6 percent, over the previous period.
Sales taxes for the 12 months generated $4.6 billion, an increase of $409.6 million, or 9.8 percent, from the prior period.
Oil and gas gross production tax collections brought in $638.2 million during the 12 months, up by $226.3 million, or 55 percent, from the previous period.
Motor vehicle collections total $766 million for the period. This is an increase of $22.4 million, or 3 percent, from the trailing period.
Other sources generated $1.7 billion, up by $174.6 million, or 11.1 percent, from the previous year.
About Gross Receipts to the Treasury
The Office of the State Treasurer has issued the monthly Gross Receipts to the Treasury report since March 2011 to provide a timely and broad view of the state’s macro economy.
It is released in conjunction with the General Revenue Fund allocation report from the Office of Management and Enterprise Services, which provides important information to state agencies for budgetary planning purposes.
The General Revenue Fund receives less than half of the state’s gross receipts with the remainder paid in rebates and refunds, remitted to cities and counties, and placed into off-the-top earmarks to other state funds.
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For more information contact:
Tim Allen, Deputy Treasurer for Communications & Program Administration