State Revenue Collections Top Estimate

OKLAHOMA CITY (AP) _ State revenue beat official estimates for the month of May but gross production taxes on oil and gas, the driving force behind the state's economy, fell below the estimate for

Tuesday, June 12th 2007, 3:58 pm

By: News On 6

OKLAHOMA CITY (AP) _ State revenue beat official estimates for the month of May but gross production taxes on oil and gas, the driving force behind the state's economy, fell below the estimate for the month, officials said Tuesday.

Treasurer Scott Meacham said general revenue fund collections for May totaled $435.2 million, according to preliminary reports. That was $4.8 million or 1.1% below collections in May 2006 but $6.6 million or 1.5% above the estimate.

Gross production taxes have declined this year due largely to lower than anticipated natural gas prices. Collections in May yielded $68.1 million, which was $4.2 million below prior year collections and $13.1 million below the estimate.

But Meacham said higher sales tax and income tax collections indicate the state's economy remains strong.

``The ongoing growth in sales tax collections is a key indicator that our economy is doing well,'' he said. ``Income tax collections are also strong when tax cuts enacted at the start of the year are factored in.''

The personal income tax rate dropped from 6.25% to 5.65% on Jan. 1.

Net income taxes, a combination of personal and corporate income taxes, produced $159.2 million, which was $2.7 million below the prior year and $14.9 million above the estimate.

The state sales tax produced $125.5 million for the month, which was $5.3 million above the prior year and $1.1 million above the estimate.

Motor vehicle taxes produced $23.8 million, which was $4.2 million above the prior year and $6.3 million above the estimate.

Other revenue, including the treasurer's investment earnings along with taxes on insurance, inheritance, alcoholic beverages and others produced $58.5 million _ $7.4 million below the prior year and $2.6 million below the estimate.