Tulsa's Sales Tax Collections Have Declined 12 Consecutive Months

NewsOn6.com

TULSA, OK -- The report from the Oklahoma Tax Commission regarding sales tax collections for the City of Tulsa shows the collections have now declined 12 consecutive months. 

According to the preliminary report, sales tax collections from mid-January to mid-February totaled $14,916,708, an 11.6 percent decline from the same month last year. That decline was consistent with revised general fund budget predictions.

Use taxes, which businesses and others pay on purchases of equipment from out-of-state vendors, were below budget estimates. The total was $997,427, down 31.4 percent from the same period last year and 25 percent below budget estimates.

"This continued decline further confirms our decision to reduce the general fund budget in order to have a balanced budget by the end of the fiscal year," said Mayor Dewey Bartlett. "We are not yet seeing significant improvement in the local economy. So far, we are unable to determine if we have reached the bottom of this economic cycle. Our sales tax decline began in April, 2009, which was a decline of more than 5 percent from the previous year.

"Finding solutions to our financial situation by reviewing our core businesses is one approach that will steel the City against future economic declines. We continue to look for new ways of doing business. KPMG has arrived in Tulsa (Monday) to begin the planning stages of a strategic business review of City of Tulsa departments. It is still our goal to have the review completed by early summer."

2/15/2010  Related Story: City Of Tulsa Examining Costs Of Each City Service

Since the decline in sales tax revenues began early last year, the current and past City administrations have reduced operating expenses in the general fund by about $27 million.

In the first nine months of the fiscal year, the City has collected $18.34 million less in sales taxes and $2.02 million less in use taxes compared to the previous year.