"The sustained growth in income and sales tax collections is a key indicator that Oklahoma’s economy had another nice year and remains on solid footing going forward."--Oklahoma Secretary of Finance and Revenue Preston DoerflingerWell, it wasn't that nice of a year.
The Oklahoma Office of Management and Enterprise Services released their latest state General Revenue report last week that showed the state collected just over $527 million in June. This is $61 million less than the estimated amount and $54 million less than the amount collected last year. More concerning are the collections from the two most important revenue sources--income and sales tax collections--which both fell below the estimate for the month.
Despite the claims from state officials, declines in state sales and income tax collections are not indicative of a growing economy.
As I've been saying for months now, state tax collections have been indicating for months that the state economy has been weaker than many are claiming. Sales tax collections--perhaps the best indicator of state economic health-- have been stagnant since peaking early last fall. Plus, as I mentioned a few weeks ago Oklahoma personal income in the first quarter fell at a rate that ranked among the nation's worst.
Oklahoma's economy may not be contracting, but it's far from strong. The latest state revenue report does little to change that.
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