NEWS RELEASE

Tuesday, September 14, 2004
For immediate release

AUGUST COLLECTIONS ABOVE
PRIOR YEAR, ESTIMATE

(OKLAHOMA CITY) General Revenue Fund collections for August were higher than prior year receipts, the Office of State Finance reported today.

Preliminary reports show General Revenue Fund collections totaled $378.3 million for August. That amount was:

• $11.7 million or 3.2 percent above the prior year; and
• $19.6 million or 5.5 percent above the estimate.

Scott Meacham, Director of the Office of State Finance, said the latest revenue collections show ongoing strength in the state’s economy.

“We once again saw year-to-year improvement in individual income tax, corporate income tax and sales tax collections, the key indicators of strength in the underlying economy,” Meacham said. “Gross production tax collections from natural gas also remain strong due to higher-than-expected prices.”

Meacham added, “Two revenue sources – motor vehicle and sales tax collections – were below our estimate. It is not unusual to see some fluctuation in motor vehicle tax collections throughout the year, and we believe the sales tax collections’ variation is seasonal as well. We are encouraged that sales tax collections to-date are 6.8 percent ahead of the prior year and are slightly over our estimate.”

Net income taxes -- This source yielded $166.6 million to the FY-05 General Revenue Fund, which was $15.3 million or 10.1 percent above the prior year and $13.3 million or 8.7 percent above the estimate. Individual income tax revenue was $161.6 million. That was $10.3 million or 6.8 percent above the prior year and $8.4 million or 5.5 percent above the estimate. Corporate income tax revenue was $5.0 million, or $5.0 million more than one year ago when refunds exceeded collections and $4.9 million above the estimate

Sales tax -- The state’s number two revenue source produced $110.5 million for general revenue, up $5.4 million or 5.2 percent from the prior year but $1.5 million or 1.3 percent below the estimate.

Gross production tax -- This tax on natural gas accounted for $38.3 million for general revenue, which was $3.9 million or 11.4 percent above the prior year and $10.6 million or 38.0 percent above the estimate.

Motor vehicle taxes -- This source, based on motor vehicle sales and licenses, produced $17.8 million, which was $1.1 million or 5.9 percent below the prior year and $1.7 million or 8.8 percent below the estimate.

Other Revenue -- Other revenue, which includes a wide range of sources such as cigarettes, liquor, insurance and inheritance taxes, interest and investments, produced $45.1 million. This was $11.8 million or 20.7 percent below the prior year and $1.0 million or 2.1 percent below the estimate.