Office of State Finance - February 2005 Revenue Collections

NEWS RELEASE
Tuesday, March 15, 2005
For immediate release

FEBRUARY REVENUE COLLECTIONS ABOVE PRIOR YEAR AND ESTIMATE

(OKLAHOMA CITY) General Revenue Fund collections for the month of February were above prior year receipts and the Office of State Finance’s estimate, state finance officials reported today.

Preliminary reports show General Revenue Fund collections for February totaled $290.2 million. That amount was:

$28.8 million or 11.0 percent above the prior year; and
$41.2 million or 16.6 percent above the estimate.

“State revenue collections remain strong,” said Scott Meacham, Director of the Office of State Finance. “February is typically our worst month for individual income tax collections due to the large number of refunds. However, collections were above both the prior year and estimate. Strength also was evident in our other key revenue sources – gross production tax on natural gas and sales taxes.

“For the year-to-date, collections are $238.1 million above the estimate,” Meacham added. “This indicates the strong likelihood of there being excess surplus revenue after we make the maximum deposit to the Rainy Day Fund. The Board of Equalization received figures last month that estimated excess surplus revenue would be $187.3 million. We actually believe this may continue to grow and possibly reach $200 million by year’s end.”

Deposits to the Constitutional Reserve or Rainy Day Fund are made when collections exceed the estimate at the fiscal year’s end. The balance in the Rainy Day Fund is constitutionally limited to 10 percent of prior year certified general revenue. The limit on the Rainy Day Fund is currently $461.3 million which means that only $243.8 million may be deposited at the end of the current fiscal year.

Net income taxes produced $72.9 million, which was $9.7 million or 15.4 percent above the prior year and $13.9 million or 23.6 percent above the estimate. Individual returns produced all of that revenue. Corporate income tax refunds exceeded collections by $1.2 million. Refunds in excess of collections historically are not uncommon in February. Individual income tax collections were up 9.7 million or 15.4 percent over the prior year and $13.9 million and 23.6 percent over the estimate for that revenue source.

The state sales tax produced $102.1 million for the month, which was $1.9 million or 1.9 percent above the prior year and $1.3 million or 1.3 percent above the estimate.

The gross production taxes on natural gas yielded $49.5 million for the month, which was $8.3 million or 20.3 percent above the prior year and $17.5 million or 54.7 percent above the estimate.

Motor vehicle taxes produced $16.3 million, which was $2.0 million or 11.2 percent below the prior year and $0.6 million or 3.3 percent below the estimate.

Other revenue produced $49.5 million for the month of February. This was $10.8 million or 28.0 percent above the prior year and $9.2 million or 22.7 percent above the estimate.