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(The Center Square) – Oklahomans are seeing lower energy prices, but that means the state is also seeing less revenue, according to the state treasurer’s office.
The 12-month total of gross receipts to the treasury declined by $146 million to $17.48 billion, State Treasurer Todd Russ reported. He said the continued decline correlates with declines in energy prices.
May’s total receipts were down by $15.6 million compared to May 2022 as oil and gas production revenue dropped by 41.9% for a total decline of $68 million in oil and gas revenue, the treasurer’s office reported.
The news comes as regional economic trends have indicated uncertainty, Russ reported. Creighton University’s Mid-America Business Conditions Index decreased from 54.8 in April to 51.3 in May. The Business Conditions Index ranges between 0 and 100. 50 represents growth neutral.
Oklahoma’s index component fell below growth neutral down to 44.7 in May, according to the state treasurer.
Other economic indicators paint a better picture. Income tax collections have gone up. Gross income tax collections, including individual and corporate income taxes, increased by $34.1 million, or 9%, for a total of $391.1 million in May compared to last year. Individual income tax collections made up the majority of $340.4 million, an increase of $26.2 million.
Corporate collections were $50.7 million in May compared to 2022, up 18.5% to $7.9 million.
Collections on sales and use taxes also increased. The state collected $577.4 million in combined sales and use taxes in May, an increase of $11.8 million. Of that total, sales tax collections made up $491.4 million, which was an increase of $5.9 million, according to the state treasurer. Use taxes, collected on out-of-state purchases like internet sales, made up $86.1 million, an increase of 7.4%.
During the last 12 months, the state collected $6 billion in income taxes, an increase of $58.9 million, a 1% increase. Individual income taxes made up $5 billion of that number.
The state collected $7 billion in sales and use taxes, up 7.4%. That’s an increase of $483.4 million, according to the treasurer’s office.
The state’s unemployment rate is still one of the lowest in the country, dropping below 3% to 2.9% in April.
The annual inflation rate closed out April at 4.9%, with the food index remaining at 7.7% over the past year. The energy component declined by 5.1%, according to the report.
This article First appeared in the center square
