(The Center Square) - Oklahoma's gross receipts increased by 5% in May compared to last year, but state Treasurer Randy McDaniel said that's not necessarily good news.
The growth rate is the lowest in 10 months. Consumption taxes, which are sales and use tax receipts, grew by 5.9%. McDaniel says the inflation rate at 8.3% and high energy prices, up 30.3% over the year, are the reason.
"When inflation outpaces revenue, buying power decreases," McDaniel said. "Spending more to purchase the same things impacts all budgets, especially those of hard-working Oklahomans."
Unemployment, another sign of economic performance, remains low, according to figures released by McDaniel.
April's unemployment rate was unchanged from March at 2.7%, lower than the national rate, which also held steady in April at 3.6%.
Oklahoma's income tax collections are down by about 12% but that is because of a delay in the 2021 filing deadline that inflated May 2021 collections.
"Oklahoma is holding its own in a challenging economic environment," McDaniel said. "While unemployment remains low, equity returns have not recovered and inflation is taking a toll on everyone."
The state's Business Collection Index increased from 65.8 in April to 66.1 in May.
Tax collections on oil and natural gas production jumped from $74.9 million to $162.1 million, an increase of 85.8%. The gross production tax represented 12% of collections in May but only 9% in the previous year, according to information from the treasurer.
"The outlook remains positive as numbers above 50 indicate expected expansion during the next three to six months," the report said.
The monthly gross collections report is an indication of how the state's economy is performing. Another economic indicated, the General Revenue Fund report, is expected to be released in a few days.
via Oklahoma's Center Square News