GRF collections at six-month mark above estimate and prior year
OKLAHOMA CITY — General Revenue Fund collections in December totaled $584.1 million, which is $0.6 million, or 0.1%, above the monthly estimate. This is $47.7 million, or 7.6%, below collections in December of 2019. Total GRF collections through the first six months of fiscal year 2021 are $3.3 billion, which is $122.4 million, or 3.8%, above the estimate, and $189.2 million, or 6.0%, above prior year collections for the same period.
“We are encouraged by the unexpectedly high performance of collections in the first half of this fiscal year. The next wave of federal stimulus money coming into the state soon also adds to the encouragement looking into the remainder of fiscal year 2021,” said OMES Executive Director Steven Harpe. “Based on this data and the latest Board of Equalization meeting projections, it appears the state is on solid footing headed into the upcoming legislative session.”
At the December Board of Equalization meeting, collections were projected to finish $616.8 million lower than originally estimated, which is still above the requirements to meet allocations. Gross production taxes are projected to be the biggest contributor of lagging collections with income and sales taxes anticipated to give ground for the remainder of the year. The latest federal stimulus package was not included in the December projections and is expected to enhance collections.
Major tax categories in December contributed the following amounts to the GRF:
- Total income tax collections of $297.8 million were $47.9 million, or 19.2%, above the estimate and $12.6 million, or 4.0%, below the prior year.
Individual income tax collections of $241.5 million were $7.7 million, or 3.3%, above the estimate and $4.6 million, or 1.9%, below the prior year.
Corporate income tax of $56.4 million were $40.2 million, or 248.1%, above the estimate and $8.0 million, or 12.4%, below the prior year.
- Sales tax collections of $179.2 million were $17.6 million, or 9.0%, below the estimate and $4.2 million, or 2.3%, below the prior year.
- Gross production tax collections of $18.6 million were $34.5 million, or 64.9%, below the estimate and $35.7 million, or 65.7%, below the prior year.
Natural Gas collections of $18.6 million were $1.4 million, or 6.8%, below the estimate and $2.0 million, or 11.8%, above the prior year.
Oil collections were zero and will not be a major contributor to the General Revenue Fund until the first $150 million of oil collections to other receiving funds is met.
- Motor vehicle tax collections of $2.8 million were $1.0 million, or 54.2%, above the estimate and $0.5 million, or 14.8%, below the prior year.
- Other revenue collections of $85.6 million were $3.9 million, or 4.8%, above the estimate and $5.3 million, or 6.6%, above the prior year.
As state government’s main operating fund, the GRF is the key indicator of state government’s fiscal status and the predominant funding source for the annual appropriated state budget. GRF collections are revenues that remain for the appropriated state budget after rebates, refunds, other mandatory apportionments and after sales and use taxes are remitted back to municipalities. In contrast, gross collections, reported by the State Treasurer, are all revenues remitted to the Oklahoma Tax Commission.
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