Leadership notes: City tax collections indicative of resilient OKC economy, consumer confidence

Throughout the last two years, the Oklahoma City metro has consistently bucked the norm when it comes to economic strength and viability when compared to other large cities. While community leaders in those cities lamented over higher-than-normal unemployment rates and lower tax revenue collections, leaders here breathed a sigh of relief as unemployment remained low and sales tax collections rebounded, even setting record highs.

I recently looked back at Oklahoma City’s year-over-year tax collections from July 2021 through July 2022. Overall sales tax collections were up 8% from $46.3 million in July 2021 to $49.8 million in July 2022. The largest increases came in the areas of utilities (28.2%), manufacturing (27.3%) and services (12.4%), which includes telecommunications; real estate and rental and leasing; arts, entertainment, and recreation; and other services. What is even more encouraging is that the hotel & restaurants sector, and the services sector are both on a 15-month positive streak for increasing year-over-year tax collections, and the manufacturing and wholesale sectors are currently on a 14-month positive streak. Great news indeed!

When reviewing this data with economists, they do encourage everyone to proceed with a bit of caution over the coming months as signs of a nationwide economic slowdown are still knocking at the door. Short-term and long-term uncertainties abound, especially as the Federal Reserve continues to try and tame inflation as we approach the end of calendar year 22 and the holiday shopping season. How the national economy performs may very well dictate Oklahoma City’s economic performance in calendar year 2023. A soft landing from the Federal Reserve’s actions could spur even more economic growth, or a hard landing could stifle growth and ultimately lead to a nationwide recession. Only time will tell.

I am confident that Oklahoma City residents will continue to rise up to the challenge and meet whatever comes head on and prove once again their positive outlook, resiliency and can-do attitude will win the day.   

Sincerely,

Roy H. Williams, CCE
Chamber CEO & President

This story originally appeared in the September 2022 edition of the VeloCity newsletter.