OKLAHOMA STATE TREASURER
For Immediate Release: April 3, 2012
Two-year Revenue Growth Streak Ends as Collections Fall
OKLAHOMA CITY – Oklahoma’s two-year revenue growth streak has come to an end
as total revenue collections in March fell slightly lower than collections from the same month
last year, State Treasurer Ken Miller said today as he released the March gross receipts report.
Total collections for the month were $920.6 million, down by about $2.6 million or 0.3
percent from March of last year. Miller said the biggest drop among the major sources of
revenue came from the gross production tax, which fell by more than one-third.
Income tax collections were lower for the first time in eight months with negative
corporate income tax collections weighing down the slightly positive personal income tax
Sales tax receipts are the only major revenue source that outperformed the previous year
with collections surging 15 percent compared to March 2011.
Watching the energy sector
“In the coming months, we will closely watch the energy sector as it is a leading sector of
Oklahoma’s economy,” Miller said.
Gross production collections were down in March for a fourth consecutive month,
reflecting the impact of low natural gas prices. On Monday, the spot price of natural gas closed
at its lowest point for the year, below $1.90 per thousand cubic feet (mcf), at the Henry Hub in
Louisiana, the primary marketplace for Oklahoma-produced natural gas.
“While one month does not a trend make in overall revenue collections, four continuous
months of decreasing gross production collections is getting trendy,” Miller said. “And due to the
timing of gross production collections, March receipts reflect market activity from January. We
should expect a period of shrinking natural gas tax collections until prices rebound, especially if
the price triggers a lower extraction tax rate.”
Miller said state financial authorities will keep a close eye on natural gas prices.