OKLAHOMA CITY — Gross Receipts to the Treasury recorded a brand new excessive over the previous 12 months, but rising rates of interest are a trigger for concern relating to future financial progress, State Treasurer Todd Russ introduced this week.
Twelve-month gross receipts by January are $17.48 billion, up by $1.98 billion or 12.8% from the prior 12 months. For the month, complete collections of $1.59 billion are up by $40.5 million, or solely 2.7% in comparison with final January.
“The Gross Receipts report shows noteworthy improvement,” mentioned Treasurer Russ. “Even so, higher interest rates are causing a slowdown in housing demand and other economic activity.”
Over the previous yr, all main income streams mirrored progress. Sales and use tax collections exceeded the speed of inflation of 6.5%, rising at 8.6%. Income tax receipts elevated by 13.1%.
The month-to-month Oklahoma Business Conditions Index rose barely in January. This index, produced by Creighton University, elevated from 40.2 in December to 43.3 depicting some financial enchancment. However, an index quantity beneath 50 signifies a forecast for potential contraction through the subsequent three to 6 months.
Other indicators
As measured by the Consumer Price Index, the U.S. Bureau of Labor Statistics (BLS) studies the annual inflation fee at 6.5% in December. The power part of the index at 7.3% over the yr is predicted to remain excessive, together with the meals index which stands at 10.4%.
Oklahoma’s employment numbers proceed to exhibit energy, regardless of adjustments in workforce traits. The Oklahoma unemployment fee in December stayed at 3.4%, as reported by the BLS. This fee has not modified since September. The U.S. jobless fee was 3.5% in December, down by one-tenth of a proportion level from November.
According to Federal Reserve Economic Data from 2022, common mortgage charges doubled from 3.5% to 7% through the starting of final yr by October. Thereafter, 30-year mortgage charges have declined to almost 6%, however the comparatively excessive charges coupled with greater housing costs have precipitated a drop in housing demand.
January collections
January 2023 collections in comparison with gross receipts from January 2022 present:
• Total month-to-month gross collections are $1.55 billion, up by $40.5 million, or 2.7%.
• Gross revenue tax collections, a mixture of particular person and company revenue taxes, generated $550.4 million, down by $3.1 million, or 0.6%.
o Individual revenue tax collections are $482.2 million, a rise of $35.9 million, or 8.0%.
o Corporate collections are $68.2 million, down by $38.9 million, or 36.4%.
• Combined gross sales and use tax collections, together with remittances on behalf of cities and counties, complete $629.4 million – up by $32.3 million – or 5.4%.
o Sales tax collections complete $515.2 million, a rise of $21.9 million, or 4.4%.
o Use tax receipts, collected on out-of-state purchases together with web gross sales, generated $114.2 million, a rise of $10.3 million, or 9.9%.
• Gross manufacturing taxes on oil and pure gasoline complete $153.1 million, a rise of $9.6 million, or 6.7%.
• Motor car taxes produced $74.1 million, up by $5.4 million, or 7.8%.
• Other collections composed of some 60 completely different sources produced $141.8 million – down by $3.7 million, or 2.5%.
Twelve-month collections
Combined gross receipts for the previous 12 months in comparison with the prior interval present:
• Gross income totals $17.48 billion. That is $1.98 billion, or 12.8%, above collections from the earlier 12 months.
• Gross revenue taxes generated $6.0 billion, a rise of $700.5 million, or 13.1%.
o Individual revenue tax collections complete $5.0 billion, up by $587.3 million, or 13.2%.
o Corporate collections are $1.0 billion, a rise of $113.2 million, or 12.8%.
• Combined gross sales and use taxes generated $6.9 billion, a rise of $544.3 million, or 8.6%.
o Gross gross sales tax receipts complete $5.8 billion, up by $428.5 million, or 7.9%.
o Use tax collections generated $1.0 billion, a rise of $115.8 million, or 12.3%.
• Oil and gasoline gross manufacturing tax collections generated virtually $2.0 billion, up by $747.2 million, or 59.9∞.
• Motor car collections complete $875.7 million, a rise of $3.0 million, or 0.3%.
• Other sources generated $1.7 billion, down by $13.5 million, or 0.8 %.
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