Report shows rising consumer demand, strong sales in OKC

Record and near-record sales and use tax collections in recent months reflect Oklahoma City’s continuing recovery from the economic doldrums of the pandemic.

Tax revenues that flowed into the city’s General Fund in June nearly matched an all-time record set in May.

Sales tax revenues far outpaced collections in the same time frame last year and also exceeded recent projections, officials said. The results likely reflected a release of pent-up demand and people venturing out more to stores and other local businesses.

The city collected about $49.8 million in total sales and use tax revenue during the June reporting period. For fiscal year 2021, which marked its end this month, the city collected about $572.9 million in total sales and use tax revenue.

The June report reflects tax collections in the last half of April and estimated collections through the first half of May. It shows sales tax collections for the period totaled about $24.3 million. That’s around $4.9 million, or 25.2%, more than what was projected and $6.5 million (36.8%) more than what was collected in the same timeframe last year.

For the fiscal year, sales tax revenue finished 2.8%, or about $7 million, above projections and 2.4%, or about $6.1 million, more than the previous fiscal year.

As far as use tax collections, which typically fluctuate more than sales tax, they amounted to about $4 million for June. That’s about $1.3 million, or 24%, less than what was projected for the time period and $640,000, or 13.7%, below the same month last year. However, according to a release from the city, the decline is attributable to one company’s significant refund for a years-old overpayment. Excluding the refund, use tax collections would have been 44% higher than the same month last year.

General Fund use tax revenue finished the fiscal year 2.2%, or about $1.6 million, above the projection and 14%, or about $9 million, above this point last year.

Sales tax comes from retail sales in Oklahoma City. Use tax is charged at the same rate and comes from goods purchased elsewhere and shipped or brought into the city, like online sales or equipment not available from Oklahoma suppliers.

The overall sales tax rate in most of Oklahoma City is 8.625%. Out of each dollar collected, 4.125 cents goes to the city and the rest belongs to the state. Concerning the city’s share, 2¼ cents out of each dollar is allocated to the General Fund, one cent goes to MAPS 4, three-fourths of a cent is dedicated to police and fire service, and one-eighth of a cent goes to the zoo.

This story originally ran on the JournalRecord.com.