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Gross Receipts to the Treasury
State Capitol Building, Room 217 • Oklahoma City, OK 73105 • (405) 521-3191 • www.treasurer.ok.gov
November 5, 2020
to the Great Recession. Rig counts statewide are reported at 14 in October, compared to a peak of 213 six years ago.
Individual income tax receipts for the month are down for the first time since June, partially due to fewer unemployment checks
Income revenue drops amidst downturnOklahoma Gross Receipts to the Treasury continued their slide in October as individual income tax collections dropped by 7.5 percent, indicating the state’s economic downturn has yet to subside, State Treasurer Randy McDaniel announced on Thursday.
October receipts from all sources total $1.1 billion, down by more than $47 million, or 4.1 percent, from October of last year. Combined gross receipts for the past 12 months total $13.2 billion, off by more than $500 million compared to collections from the previous 12 months.
“We are experiencing the spillover effect of the pandemic as it chills global demand for oil and gas,” said Treasurer McDaniel. “When the energy industry is down in Oklahoma, it reduces economic activity across the state, including earned income and consumer spending.”
The gross production tax on oil and natural gas has been down significantly every month for more than a year. Oil field employment is at its lowest level, 33,700, since prior
being sent to Oklahomans. Meanwhile, sales tax collections have been down
every month except one since September of last year.
Other economic indicators
The Oklahoma Business Conditions Index in October remained above
“We are experiencing the spillover effect of the pandemic as it chills global demand for oil and gas.”
October 2020
Oklahoma State Treasurer Randy McDaniel
Monthly Gross Receipts Change from Prior Year
Source: Office of the State Treasurer
-30%
-20%
-10%
0%
10%
20%
30%
May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20
www.treasurer.ok.govhttp://twitter/OKTreasurerhttp://twitter.com/OKTreasurerhttp://www.facebook.com/TreasurerMcDaniel
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October Gross Receipts
growth neutral for a fifth month. The October index was set at 61.1, up from 58.6 in September.
Numbers above 50 indicate economic expansion is expected during the next three to six months.
The unemployment rate in Oklahoma was reported as 5.3 percent in September, down from 5.7 percent in August.
The seasonally adjusted number of Oklahomans listed as jobless was reported as 99,800, according to figures released by the U.S. Bureau of Labor Statistics.
The U.S. unemployment rate was listed at 7.9 percent in September.
October collections
Compared to gross receipts from
October 2019, collections in October 2020 showed:
• Total October 2020 gross collections are $1.1 billion, down $47.4 million, or 4.1 percent.
• Gross income tax collections, a combination of individual and corporate income taxes, generated $376.7 million, a decrease of $19 million, or 4.8 percent.
° Individual income tax collections are $345.9 million, down by $28 million, or 7.5 percent.
° Corporate collections are $30.8 million, an increase of $9 million, or 41.1 percent.
• Combined sales and use tax collections, including remittances on behalf of cities and counties, total $460.1 million – up by $815,035, or 0.2 percent.
° Sales tax collections total $396.1 million, a decrease of $2.8 million, or 0.7 percent.
° Use tax receipts, collected on out-of-state purchases including online sales, generated $64 million, an increase of $3.6 million, or 6 percent.
• Gross production taxes on oil and natural gas total $48 million, a decrease of $23.7 million, or 33 percent.
www.treasurer.ok.gov • Page 2
Gross Receipts to the Treasury November 5, 2020
Source: Office of the State Treasurer
Monthly Gross Receipts vs. Prior YearDollar change (in $ millions) from prior year by revenue source
Shaded area denotes U.S. recession
-$100
-$50
$0
$50
$100
Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20
Income Tax
Sales & Use Tax
Gross Production
Motor Vehicle Other DelayedIncome Tax+$360.5 MM
DelayedIncome Tax-$414.4 MM
Variance From Prior Year Variance From Prior Year (In $ millions) October-19 October-20 $ %
Total Income Tax 395.7 376.7 (19.0) -4.8%
Individual 373.9 345.9 (28.0) -7.5% Corporate 21.8 30.8 9.0 41.1%
Sales & Use Tax (1) 459.3 460.1 0.8 0.2%
Sales Tax 399.0 396.1 (2.8) -0.7% Use Tax 60.4 64.0 3.6 6.0%
Gross Production 71.6 48.0 (23.7) -33.0%Motor Vehicle 66.9 69.4 2.5 3.7%Other Sources (2) 151.0 143.0 (8.0) -5.3%
TOTAL REVENUE 1,144.6 1,097.2 (47.4) -4.1%
(1) Includes Collections for Counties and Municipalities(1) Includes Collections for Counties and Municipalities(1) Includes Collections for Counties and Municipalities
(2) Gross Collections from OTC
Details may not sum due to rounding. Details may not sum due to rounding.
www.treasurer.ok.gov
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October Gross Receipts
• Motor vehicle taxes produced $69.4 million, up by $2.5 million, or 3.7 percent.
• Other collections composed of some 60 different sources including taxes on fuel, tobacco, medical marijuana,
and alcoholic beverages, produced $143 million – down by $8 million, or 5.3 percent.
° The medical marijuana tax produced $5.3 million, up by $2.2 million, or 73 percent from the prior October.
Twelve-month collections
Combined gross receipts for the past 12 months (November 2019 through October 2020) compared to the prior 12 months showed:
• Gross revenue totals $13.21 billion. That is $521 million, or 3.8 percent, below collections from the previous 12-month period.
• Gross income taxes generated $4.75 billion, reflecting an increase of $75.5 million, or 1.6 percent.
° Individual income tax collections total $4.1 billion, down by $74.2 million, or 1.8 percent.
° Corporate collections are $673.9 million, an increase of $149.7 million, or 28.5 percent.
• Combined sales and use taxes generated $5.46 billion, a drop of $152.2 million, or 2.7 percent.
° Gross sales tax receipts total $4.7 billion, down by $195.8 million, or 4 percent.
° Use tax collections generated $762.3 million, an increase of $43.5 million, or 6.1 percent.
• Oil and gas gross production tax collections generated $685.2 million, down by $421.9 million, or 38.1 percent.
• Motor vehicle collections total $776
November 5, 2020Gross Receipts to the Treasury
www.treasurer.ok.gov • Page 3
12-Month Gross Receipts12 months ending Mar. 2008 – 12 months ending Sep. 2020 (in $ millions)
Shaded area denotes U.S. recessions. Source: Office of the State Treasurer
$8,500
$9,500
$10,500
$11,500
$12,500
$13,500
$14,500
Apr-08
Oct-08
Apr-09
Oct-09
Apr-10
Oct-10
Apr-11
Oct-11
Apr-12
Oct-12
Apr-13
Oct-13
Apr-14
Oct-14
Apr-15
Oct-15
Apr-16
Oct-16
Apr-17
Oct-17
Apr-18
Oct-18
Apr-19
Oct-19
Apr-20
Oct-20
$9,364Feb-10
$13,214Oct-20
$11,284Dec-08
$12,103Feb-15
$10,764Mar-17
$13,735Oct-19
Prior Year Current Year Variance From Prior Year Variance From Prior Year (In $ millions) Nov18-Oct19 Nov 19 - Oct 20 $ %
Total Income Tax 4,674.4 4,749.9 75.5 1.6%
Individual 4,150.1 4,076.0 (74.2) -1.8% Corporate 524.3 673.9 149.7 28.5%
Sales and Use Tax (1) 5,611.2 5,459.0 (152.2) -2.7%
Sales Tax 4,892.4 4,696.7 (195.8) -4.0% Use Tax 718.8 762.3 43.5 6.1%
Gross Production 1,107.1 685.2 (421.9) -38.1%Motor Vehicle 792.5 776.0 (16.5) -2.1%Other Sources (2) 1,550.2 1,544.3 (5.9) -0.4%
TOTAL REVENUE 13,735.4 13,214.4 (521.0) -3.8%
(1) Includes Collections for Counties and Municipalities(1) Includes Collections for Counties and Municipalities(1) Includes Collections for Counties and Municipalities
(2) Gross Collections from OTC
Details may not sum due to rounding. Details may not sum due to rounding.
www.treasurer.ok.gov
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October Gross Receipts
November 5, 2020
million. This is a decrease of $16.5 million, or 2.1 percent.
• Other sources generated $1.54 billion, down by $5.9 million, or 0.4 percent.
° Medical marijuana taxes generated $52.4 million, up by $34.3 million, or 189 percent, from prior period collections of $18.1 million.
The monthly Gross Receipts to
the Treasury report, developed
by the state treasurer’s office,
provides a timely and broad
view of the state’s economy.
It is released in conjunction
with the General Revenue
Fund report from the Office of
Management and Enterprise
Services, which provides
information to state agencies
for budgetary planning
purposes.
The General Revenue Fund,
the state’s main operating
account, receives less than half
of the state’s gross receipts with
the remainder paid in rebates
and refunds, remitted to cities
and counties, and apportioned
to other state funds.
About Gross Receipts to the Treasury
More information
Tim Allen Deputy Treasurer for Communications & Program Administration [email protected] (405) 205-4929 – mobile
Archived reports dating to March 2011: https://go.usa.gov/xfu5Q
Gross Receipts to the Treasury
www.treasurer.ok.gov • Page 4
Gross Production (Extraction) Tax Collections
Source: Office of the State Treasurer
$10
$30
$50
$70
$90
$110
$130
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Prior 12 monthsCurrent 12 months
(in m
illio
ns)
Revenue Sources as Percentage of Whole
September 2020 Past 12 Months
Individual IncomeCorporate IncomeSales Tax (1)Use Tax (1)Gross ProductionMotor VehicleOther (2)
Numbers may not sum due to rounding.
13%6%4%6%
36%
3%
32%12%
6%5%6%
36%
5%
31%
mailto:tim.allen%40treasurer.ok.gov?subject=https://go.usa.gov/xfu5Qwww.treasurer.ok.gov
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Economic Indicators
$10
$30
$50
$70
09 10 11 12 13 14 15 16 17 18 19 20 21
Oklahoma Stock IndexJanuary 2009 – September 2020
Shaded areas denote U.S. recessions Source: Office of the State Treasurer
$25.63
Avg=$42.79
November 5, 2020Gross Receipts to the Treasury
www.treasurer.ok.gov • Page 5
0
2.5
5.0
7.5
10.0
12.5
15.0
80 85 90 95 0 5 10 15 20
U.S.Oklahoma
Source: Bureau of Labor Statistics
Unemployment RateJanuary 1980 – September 2020
Shaded areas denote U.S. recessions
OK-5.3%U.S.-7.9%
Sources: Baker Hughes & U.S. EIA
Oklahoma Natural Gas Prices & Active RigsJanuary 2011 – October 2020
Shaded area denote U.S. recessions
Price
pe
r MM
Btu
Ac
tive
Rig
s
Active RigsPrice
0
40
80
120
160
11 12 13 14 15 16 17 18 19 20 21$0
$2
$4
$6
$8
Oklahoma Oil Prices & Active RigsJanuary 2011 – October 2020
Sources: Baker Hughes & U.S. EIAShaded area denotes U.S. recession
Price
pe
r BBLAc
tive
Rig
s
Active RigsPrice
0
75
150
225
300
11 12 13 14 15 16 17 18 19 20 21$0
$30
$60
$90
$120
Business Conditions IndexJanuary 2011 – October 2020
Source: Creighton University
This graph predicts three-to-six-month economic movement by tracking leading indicators, including new orders, production, inventories, employment, delivery lead time and prices. Numbers below 50 indicate anticipated contraction.
Shaded area denotes U.S. recession
20
35
50
65
80
11 12 13 14 15 16 17 18 19 20 21
Mid-America Oklahoma
Gross Receipts vs. Oil & Gas EmploymentJanuary 2008 – October 2020
Shaded areas denote U.S. recessions Sources: BLS & State Treasurer
Oil
& G
as
Emp
loym
en
t
12-Mo
nth
Gro
ss Re
ce
ipts
20.0
35.0
50.0
65.0
80.0
08 09 10 11 12 13 14 15 16 17 18 19 20 21$8.00
$9.50
$11.00
$12.50
$14.00
12-Month Gross Receipts (in $ billions)Oil & Gas Employment (in thousands)
www.treasurer.ok.gov