(The Center Square) – Gross receipts collected in Oklahoma in January were 27% more than the same month last year, state officials said.
Oklahoma State Treasurer Randy McDaniel said in a news release the state collected $1.5 billion more this January than during same month last year. Twelve-month gross receipts were up 18% compared with the previous period. McDaniel predicted continued economic growth for the rest of 2022.
The treasurer’s office uses monthly gross receipts reports to determine how well the economy is doing. McDaniel said inflation did play a role in increasing state tax collections, as prices are at their highest since 1982; up by about 7%.
The COVID-19 pandemic also had an affect on overall tax revenue through federal stimulus checks and aid to businesses, which McDaniel said boosted economic activity.
“A growing economy is always central to record-breaking receipts, but federal funds and inflation are helping push the numbers higher,” McDaniel said. “All of these factors should be considered this session as proposals impacting future state revenue and spending are discussed.”
January experienced growth in all major revenue streams, according to McDaniel. Gross production taxes on gas-and-oil production jumped by just more than 149% and combined collections on individuals and corporate entities increased by 28%, according to the state treasurer’s office.
Sales taxes also saw a boost, reaching historic highs for out-of-state purchases, which include internet sales. January’s use-tax collections rose above $100 million for the first time in Oklahoma history, McDaniel said. This continued the trend observed since the U.S. Supreme Court's Wayfair ruling in 2018, which paved the way for states to collect taxes on internet sales regardless of whether the online retailer had property or employees in the state.
The treasurer’s office reported a $2.38 billion increase in collections over a 12-month period in all four major revenue streams.
Taxes collected on individual income in January was 17% higher than January 2021; an increase of $64 million, according to the report. Likewise, taxes collected from corporations experienced a significant leap in January; 110.6% more than the same month last year, the treasurer’s office reported.
One area that experienced a decrease was medical marijuana, which saw a 5.8% dip in January compared with January 2021. However, the amount of money collected from the medical marijuana tax over a time period of 12 months still was up by 13.2% compared with the previous year.
Taxes on motor vehicles generated $872.7 million; up by 12.7%.
via Oklahoma's Center Square News