Inflation wreaks havoc on state’s economy, says Treasurer Randy McDaniel | Economy

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Gross Treasury receipts in May reflect the dampening effect of inflation on Oklahoma’s economy, State Treasurer Randy McDaniel announced today.

May gross receipts of $1.3 billion were up 5% from a year ago, the slowest rate of growth in 10 months. The current annual inflation rate is 8.3%. Energy prices rose 30.3% on the year and food prices rose 9.4%, the biggest increase since April 1981.

“Oklahoma is holding firm in a tough economic environment,” Treasurer McDaniel said. “While unemployment remains low, equity returns have not recovered and inflation is weighing on everyone.”

Consumption taxes (sales and use tax revenue) rose 5.9% in May, less than the current rate of inflation.

“When inflation exceeds income, purchasing power declines,” McDaniel said. “Spending more on the same things impacts all budgets, especially those of hard-working Oklahomans.”

Income tax collections fell almost 12%, but this result is linked to last year’s delayed filing deadline which increased collections in 2021. Motor vehicle receipts increased by 5.5% compared to the previous year and gross production collections in May increased considerably.

Year-over-year collections of $16.48 billion increased $2. 6 billion, or 18.8%, over the previous 12 months, with all four major revenue sources showing growth.

Other indicators

Oklahoma’s unemployment rate in April was reported at 2.7% by the US Bureau of Labor Statistics. This is unchanged from March. The US unemployment rate was 3.6% in April, also unchanged from March.

Oklahoma’s monthly business conditions index improved in May. The index for the month was pegged at 66.1, down from 65.8 in April. The outlook remains positive as numbers above 50 indicate an expected expansion over the next three to six months.

May Collections

May 2022 collections compared to May 2021 gross receipts show:

* Total monthly gross collections are $1.3 billion, up $62.2 million, or 5%.

* Gross income tax receipts, a combination of personal and corporate income taxes, generated $357 million, down $47.1 million, or 11.7%.

* Personal income tax collections amounted to $314.2 million, a decrease of $41.6 million, or 11.7%.

* Corporate collections are $42.8 million, down $5.5 million, or 11.4%.

* Combined sales and use tax collection, including remittances on behalf of cities and counties, totals $565.7 million, up $31.5 million, or 5.9% .

* Sales tax revenue totaled $485.5 million, an increase of $26.9 million, or 5.9%.

* Use tax receipts, collected on out-of-state purchases, including Internet sales, generated $80.2 million, an increase of $4.5 million, or 6%.

* Gross taxes on oil and natural gas production total $162.1 million, an increase of $74.9 million, or 85.8%.

* Motor vehicle taxes generated $75.2 million, up $3.9 million, or 5.5%.

Other collections — made up of about 60 different sources, including taxes on fuel, tobacco, medical marijuana and alcoholic beverages — produced $140.1 million. This total decreased by $883,539, or 0.6%. The medical marijuana tax generated $4.9 million, down $1.1 million, or 18.3% from May 2021.

Twelve Month Collections

The combined gross receipts for the last 12 months compared to the previous period show:

* Gross revenues total $16.48 billion. That’s $2.61 billion, or 18.8%, above prior period collections.

* Gross income taxes generated $5.94 billion, an increase of $920.6 million, or 18.3%.

* Personal income tax collections totaled $4.91 billion, up $663.3 million, or 15.6%.

* Corporate collections are $1.03 billion, an increase of $257.3 million, or 33.2%.

* Combined sales and use taxes generated $6.54 billion, an increase of $774.2 million, or 13.4%.

* Gross sales tax revenue totaled $5.56 billion, up $651.7 million, or 13.3%.

* Use tax collections generated $976.6 million, an increase of $122.6 million, or 14.4%.

* Gross oil and gas production tax revenue generated $1.44 billion, up $744.2 million, or 107.2%.

* Motor vehicle collections total $882 million, an increase of $70 million, or 8.6%.

* Other sources generated $1.68 billion, up $98.2 million, or 6.2%.

* Medical marijuana taxes generated $61.5 million, down $4.1 million, or 6.3%.

About Gross Treasury Receipts: The Monthly Gross Revenue to Treasury Report, compiled by the Office of the State Treasurer, provides a broad and timely view of the state’s economy. It is published in conjunction with the Office of Management and Business Services’ General Revenue Fund report, which provides information to state agencies for budget planning purposes. The General Revenue Fund, the state’s main operating account, receives less than half of the state’s gross revenue, with the rest going to other state funds, given to cities and counties and paid in the form of rebates and refunds. Treasurer Randy McDaniel is not seeking re-election. The Oklahoma City Sentinel respects its regular provision of precise and detailed information to the press organs, as well as its efforts and that of its professional staff sustain commendable programs such as OK STABLE and the 529 Fellowship Program.
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