Oklahoma’s economy is bouncing back from the pandemic-driven downturn with every major revenue stream showing strong growth, State Treasurer Randy McDaniel announced Tuesday.

According to McDaniel, the state collected $1.24 billion in May, a jump of more than 34 percent over May 2020. Combined receipts from the past 12 months are at an all-time high but are partially inflated by last July’s delayed income tax filing deadline, McDaniel noted.

“What a difference a year can make,” McDaniel said. “At this time last year, unemployment was high, numerous businesses had significantly reduced operations, and many people were quarantined in their homes. Today, pent-up demand has been unleashed and the economy is performing quite well.”

McDaniel said the strongest indicator of ramped up economic activity can be found in consumption tax receipts. Combined sales and use tax collections for May totaled $534.2 million, an increase of 26 percent, and motor vehicle receipts totaled $71.3 million, a 16.6 percent increase over May 2020.

According to McDaniel’s report, May’s gross production tax on oil and gas activity generated $87.3 million, a jump of almost 128 percent from the prior year. Collections for the month reflect oil field production during March when oil was more than $62 per barrel after falling below $20 per barrel during the prior year.

Combined gross receipts from the past 12 months of $13.88 billion are above collections from the previous 12 months by $808 million, or 6.2 percent. Every major revenue stream except gross production shows growth during the 12 months, but those collections are quickly recovering, McDaniel said.

Other indicators

The Oklahoma Business Conditions Index in May remained above growth neutral for a sixth consecutive month. The May index was set at 68.9, down from a record high of 70.9 in April. Numbers above 50 indicate economic expansion is expected during the next three to six months. The April unemployment rate in Oklahoma was reported as 4.3 percent, according to the U.S. Bureau of Labor Statistics. The state’s jobless rate was unchanged from March, but down significantly from 13 percent in April 2020. The U.S. unemployment rate was set at 6.1 percent in April.

Treasury Report Highlights

Gross income tax collections, a combination of individual and corporate income taxes, generated $404.1 million, up by $114.8 million, or 39.7 percent.

Individual income tax collections are $355.8 million, an increase of $76.6 million, or 27.4 percent.

Corporate collections are $48.3 million, up by $38.2 million, or 380.4 percent. Large monthly variances in corporate collections are not uncommon.

Sales tax collections total $458.6 million, an increase of $96.3 million, or 26.6 percent.

Use tax receipts, collected on out-of-state purchases including internet sales, generated $75.6 million, an increase of $13.9 million, or 22.4 percent.

Other collections composed of some 60 different sources including taxes on fuel, tobacco, medical marijuana, and alcoholic beverages, produced $141 million – up by $30.6 million, or 27.7 percent.

The medical marijuana tax produced $6 million, up by $817,643, or 15.8 percent from May 2020.

Twelve-month collections

Combined gross receipts for past 12 months compared to the trailing 12 months show:

Gross revenue totals $13.88 billion. That is $808 million, or 6.2 percent, above collections from the previous period.

Gross income taxes generated $5.02 billion, an increase of $655.6 million, or 15 percent.

Individual income tax collections total $4.25 billion, up by $382.6 million, or 9.9 percent.

Corporate collections are $774.8 million, an increase of $273 million, or 54.4 percent.

Combined sales and use taxes generated $5.77 billion, an increase of $293.5 million, or 5.4 percent.

Gross sales tax receipts total $4.91 billion, up by $175.1 million, or 3.7 percent.

Use tax collections generated $854 million, an increase of $118.4 million, or 16.1 percent.

Oil and gas gross production tax collections generated $694.2 million, down by $207.5 million, or 23 percent.

Motor vehicle collections total $812 million, an increase of $35.9 million, or 4.6 percent.

Other sources generated $1.58 billion, up by $30.4 million, or 2 percent.

Medical marijuana taxes generated $65.6 million, up by $26.6 million, or 68 percent.