Oklahoma revenues posted a strong beginning to the second quarter of fiscal 2009 last month, with general fund collections of $490.5 million in October exceeding the forecast by 9.3% and topping October 2007 collections by 10.4%.
Treasurer Scott Meacham said collections exceeded estimates and the previous year’s totals for income, sales, and gross production taxes. Only motor vehicle taxes showed a decline in collections.
“Considering the disastrous October for the national economy, these numbers are very good for Oklahoma,” Meacham said. “However, we are keeping a very close watch on early indicators of any potential downturn in the state’s economy.”
Meacham gave much of the credit for the strong collections to Clean Slate ’08, a program approved by the Legislature this year that forgave interest and penalties on late and delinquent tax payments.
“The benefit to the general revenue fund from Clean Slate in October was $28.9 million,” Meacham said. The collections include $20.2 million in personal income tax, $5.2 million in corporate income tax, $1.4 million in sales tax, and $2.1 million in use tax.
“If not for Clean Slate, income tax collections would have been below the estimate and the prior year,” the treasurer said.
The gross production tax on oil and natural gas generated $76.1 million in October, 36% higher than estimated and 55% higher than in October 2007.
Net income tax collections totaled $200.5 million in October, 10.7 % more than in October 2007 and 9.4% more than the estimate.
State sales tax revenue totaled $135.1 million, up 9.2% from last year and 0.8% above the estimate.
The motor vehicle tax produced $6.8 million less than in October 2007. That was 18.3% lower than expected.
