OKLAHOMA CITY — Revenue to the Oklahoma’s general fund hit its target for August despite a continued decline in gross production tax collections, the Office of Management and Enterprise Services said Tuesday.
“Fortunately, to this point other revenue sources have offset the lower collections,” said OMES Director John Budd.
The general revenue fund is state government’s primary operating account. Deposits to the fund are derived from tax receipts once direct apportionments to specific purposes have been made.
The annual general revenue estimate is the basis for the state’s budgeting process.
General fund deposits are 3.3% above projections for the first two months of fiscal year 2020.
August’s deposit was $451.4 million, which was slightly above the estimate and slightly below the amount for the same month a year ago.
Income tax receipts were $180.09 million, which was 4% below projections. Only $1.7 million of the total was paid by corporations, the rest by individuals.
Sales taxes, the state’s other large source of general revenue, accounted for $167 million, which was 2.5% above projections.
Gross production receipts are a much smaller component of general revenue but are considered a good leading indicator of economic activity because of oil and gas’ importance to the state’s economy.
Oil and gas tax revenue for August was $15.4 million, which was a third less than expected and more than 40% less than for the same month a year ago.
Budd called the slide “concerning.”
The state managed to hit its general revenue target primarily because of the “other revenue” category, which came in $13.7 million, or 19%, above expectations.
“Other revenue” includes more than 60 taxes, among them alcohol, fuel, cigarette and use taxes.