Area Sales Tax Receipts are Up
The monthly tax disbursement report from the Oklahoma Tax Comission offers a window into the economic health of Oklahoma counties as well as individual communities. These figures also offer a comparison to this time last year and opens a conversation topic for what effect, if any, the recent shut down and reopening of the economy has had locally, countywide, and statewide.
The Thursday, August 13 th , release from the Oklahoma Tax Commission states that the August distribution of sales tax collections by the Oklahoma Tax Commission primarily represents local tax receipts from June business. Companies that remit more than $2,500 monthly sales tax receipts are required to file and pay electronically. The monies they reported this period represent sales from June 16 th to 30 th and estimated sales from July 1 st to July 15 th .
The disbursement of $168,124,169 in sales tax collections returned to the cities and towns reflected an increase of $9,172.81 from the $158,951,388 distributed to the cities and towns in August last year. The use tax disbursement to cities and towns was $25,322,999.
In county returns, the counties shared in a $27,598,606 sales tax disbursement and a $4,490,375 use tax disbursement.
To put this in perspective, several area towns issued their first emergency proclamation in mid-March, closing bars, limiting restaurants to carry out, and setting other restrictions. A statewide proclamation followed soon after.
On April 24 th personal care businesses such as hair salons, barbershops, spas, nail salons and pet groomers began reopening only for appointments. State parks and outdoor recreation areas opened up as well. On May 1 st gyms, restaurants, theaters, sports venues and places of worship reopened with the condition all businesses recognize social distancing and sanitation protocols. Because of the lag in reporting the disbursement of taxes, the June report showed spending during the major part of the shutdown in March, the July report showed results as businesses began reopening in May, and this August report shows local spending as the local economy began to adjust to the “new normal” in June.
On the local level, Allen enjoyed an increase in both Sales and Use Tax revenue. An additional $2,777.30 was received in Sales Tax, going from $14,759.95 last year to $17,537.20 this year. Use tax was up $1,515.04; 2019 receipts totaled $2,596.65 and 2020 brought in $4,110.69.
Ada also posted a gain in Sales Tax, this year $1,439,037.36 up from $1,253,881.11; Use Tax receipts totaled $131,558.86, up from $130,370.86. Calvin had the minor increase of $67.75, going from $8,920.13 to $8,987.88. Their Use Tax income was better, going from $1,488.41 to $1,800.29.
Francis increased Sales Tax revenue to $1,316.80, up from $1,056.28; and Holdenville gained $31,472.15, received $237,255.14 compared to $205,782.99 in 2019. Holdenville also increased over $7,000 in Use Tax, receiving $29,2653.89 up from $22,134.76. Francis does not collect Use Tax.
On the other side, Atwood took a minor hit, receiving $372.13 compared to $398.34 in last year’s Sales Tax; and Gerty dropped to $159.39 from $287.83. Neither town collects Use Tax.
County Sales Tax and Use Tax receipts were both down in Hughes County but up in Pontotoc County. Hughes received $95,603.35 in Sales Tax compared to $159,426.11 last year; their Use Tax receipts dropped to $15,520.74, down from $17,250.92. Pontotoc County posted $386,332.98 this year up from $350,617.38 in Sales Tax; Use Tax this year brought in $52,498.32 compared to $47,697.00 in 2019.