NEWS RELEASE

Tuesday, August 10, 2004
For immediate release

JULY COLLECTIONS ABOVE
PRIOR YEAR, ESTIMATE

(OKLAHOMA CITY) General Revenue Fund collections for July, the first month of the new fiscal year (FY-05), improved over prior year receipts, state finance officials reported today.

Preliminary reports show General Revenue Fund collections totaled $359.7 million for July. That amount was:

• $16.4 million or 4.8 percent above the prior year; and
• $28.8 million or 8.7 percent above the estimate.

Dr. James Wilbanks, Director of the Office of State Finance’s Fiscal and Research Division, said the latest revenue collections show some strength in the state’s economy.

“We continue to see year-over-year improvements in individual income tax and sales tax collections, two key indicators of the state’s economy,” Dr. Wilbanks explained. “These numbers lead me to believe that Oklahoma’s economy continues to show some strength. Hopefully this trend will continue.”

Dr. Wilbanks noted that gross production tax collections from natural gas remain strong, reflecting higher-than-expected prices of the past several months. Only motor vehicle tax collections, which in recent years have become prone to wide swings, were below those of one year ago and below the estimate. Motor vehicle tax collections finished FY-04, the prior fiscal year, above both the prior year and estimate.

Income taxes -- This source yielded $145.4 million to the FY-05 General Revenue Fund, which was $5.9 million or 4.2 percent above the prior year and $13.9 million or 10.6 percent above the estimate. Individual returns produced $143.4 million, which was $4.4 million or 3.2 percent above the prior year and $15.3 million or 12.0 percent above the estimate. Corporate returns produced $2.0 million, which was $1.5 million or 275.5 percent above the prior year’s collections of $0.5 million but $1.4 million or 41.9 percent below the estimate.

Sales tax -- The state’s number two revenue source produced $114.1 million for general revenue, up $8.9 million or 8.4 percent from the prior year and $3.3 million or 3.0 percent above the estimate.

Gross production tax -- This tax on natural gas accounted for $44.5 million for general revenue, which was $4.1 million or 10.1 percent above the prior year and $14.8 million or 49.5 percent above the estimate.

Motor vehicle taxes -- This source, based on motor vehicle sales and licenses, produced $16.2 million, which was $3.5 million or 17.9 percent below the prior year and $4.6 or 22.1 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 $39.5 million. This was $2.2 million or 6.0 percent above the prior year and $28.5 million or 9.8 percent above the estimate.