Economic indicators [Claremore, Okla.]

              Economic Indicators September 2011 Volume 9, Number 9
Economic Indicators is a newsletter prepared by the Innovation Center at Rogers State University under the direction of Dr. Ray Brown, editor.
Established in 2002, the Center provides (1) small business counseling services, (2) entrepreneurial training, (3) a technology and business incubator, (4) business intelligence research, and (5) economic, demographic, and social research related to economic development.
Recent News
The Innovation Center has been designated as an Economic Development Administration University Center, a program that provides entrepreneurial training, community development and economic assistance to rural communities. The Center will focus on launching an Entrepreneurial Ready Community certification program to create a corridor of certified entrepreneurial-ready communities that will provide support services to small businesses and local entrepreneurs who need business assistance to become sustainable, successful job-creating entities. Communities interested in learning more about the certification are encouraged to contact the Innovation Center to schedule a community presentation that will give a detailed overview of the certification program.
Sales Tax Collection
Retail sales, as approximated by retail sales tax collections, are a broad measure of consumer spending. Sales tax data are not seasonally adjusted or adjusted for price changes. Care should be taken when interpreting sales tax collection data because the figure for a particular month represents the net revenue collected by the Oklahoma Tax Commission (OTC) for retail purchases in various prior periods. Larger retailers submit payments for sales taxes collected during the last half of the prior month and the first half of the current month. Smaller retailers submit payments for sales taxes collected over the previous calendar month only. All sales tax payments are due by the twentieth of the month. Thus sales taxes paid at the time of the purchase may be reported by the merchant and collected by the OTC for sales occurring some six weeks earlier or as recently as five days prior. In addition, some retailers make estimated payments which may understate or overstate the correct amount for a particular month which is corrected sometime in future months. In any event, reported sales tax revenue always lags behind purchases.
Economic Indicators Economic Indicators September 2011 Volume 9, Number 9
Source: Oklahoma Tax Commission
Source: Oklahoma Tax Commission
Source: Oklahoma Tax Commission
Source: Oklahoma Tax Commission
Source: Oklahoma Tax Commission
Source: Oklahoma Tax Commission
$160,000
$180,000
$200,000
$220,000
$240,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Figure 1: Craig County Sales Tax Collections by Month,
2010-2012 Fiscal Years
2010
2011
2012
$160,000
$190,000
$220,000
$250,000
$280,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Figure 3: Delaware County Sales Tax Collections by Month,
2010-2012 Fiscal Years
2010
2011
2012
$300,000
$330,000
$360,000
$390,000
$420,000
$450,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Figure 5: Mayes County Sales Tax
Collections by Month,
2010 - 2012 Fiscal Years
2010
2011
2012
$170,000
$195,000
$220,000
$245,000
$270,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Figure 2: Vinita Sales Tax Collections by Month,
2010-2012 Fiscal Years
2010
2011
2012
$55,000
$62,500
$70,000
$77,500
$85,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Figure 4: Jay Sales Tax
Collections by Month,
2010-2012 Fiscal Years
2010
2011
2012
$475,000
$525,000
$575,000
$625,000
$675,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Figure 6: Pryor Sales Tax Collections by Month,
2010 - 2012 Fiscal Years
2010
2011
2012Economic Indicators September 2011 Volume 9, Number 9
Source: Oklahoma Tax Commission
Source: Oklahoma Tax Commission
Source: Oklahoma Tax Commission
Source: Oklahoma Tax Commission
Source: Oklahoma Tax Commission
Source: Oklahoma Tax Commission
$30,000
$50,000
$70,000
$90,000
$110,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Figure 7: Nowata County Sales Tax
Collections by Month,
2010 - 2012 Fiscal Years
2010
2011
2012
$220,000
$240,000
$260,000
$280,000
$300,000
$320,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Figure 9: Ottawa County Sales Tax
Collections by Month,
2010-2012 Fiscal Years
2010
2011
2012
$625,000
$700,000
$775,000
$850,000
$925,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Figure 11: Rogers County Sales Tax
Collections by Month,
2010-2012 Fiscal Years
2010
2011
2012
$47,000
$57,000
$67,000
$77,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Figure 8: Nowata Sales Tax
Collections by Month,
2010 - 2012 Fiscal Years
2010
2011
2012
$350,000
$395,000
$440,000
$485,000
$530,000
$575,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Figure 10: Miami Sales Tax
Collections by Month,
2010-2012 Fiscal Years
2010
2011
2012
$700,000
$750,000
$800,000
$850,000
$900,000
$950,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Figure 12: Claremore Sales Tax Collections by Month,
2010-2012 Fiscal Years
2010
2011
2012Economic Indicators September 2011 Volume 9, Number 9
Source: Oklahoma Tax Commission
*Washington County’s sales tax rate increased from 0.5% to 1.0% in Nov 09
Source: Oklahoma Tax Commission
NE Oklahoma Sales Tax Collections
Table 1: Sales Tax Collections for Northeastern Oklahoma, Fiscal-Year-To-Date
City/County
State Tax Rate (percent)
County Tax Rate (percent)
City Tax Rate (percent)
Total Tax Rate (percent)
2010/2011 Fiscal Year-to-Date
2011/2012 Fiscal Year-to-Date
Percent Change
Bartlesville
4.5
1.000
3.00
8.50
$2,486,446
$2,585,943
4.0%
Bixby
4.5
1.017
3.50
9.02
$1,226,807
$1,259,362
2.7%
Broken Arrow
4.5
1.017
3.00
8.52
$5,423,513
$5,436,786
0.2%
Catoosa
4.5
1.500
3.25
9.25
$516,333
$584,574
13.2%
Claremore
4.5
1.500
3.00
9.00
$1,643,511
$1,665,612
1.3%
Craig County
4.5
2.000
N/A
N/A
$449,930
$461,747
2.6%
Delaware County
4.5
0.900
N/A
N/A
$477,775
$517,261
8.3%
Grove
4.5
0.900
3.40
8.80
$1,016,323
$1,081,210
6.4%
Jenks
4.5
1.017
3.00
8.52
$756,655
$818,256
8.1%
Mayes County
4.5
1.375
N/A
N/A
$786,966
$794,092
0.9%
Miami
4.5
1.350
3.65
9.50
$791,458
$1,083,222
36.9%
Muskogee(City of)
4.5
0.650
4.00
9.15
$3,827,575
$3,858,737
0.8%
Nowata County
4.5
2.000
N/A
N/A
$139,097
$182,555
31.2%
Nowata (City of)
4.5
2.000
3.00
9.50
$122,127
$140,726
15.2%
Okmulgee
4.5
1.000
4.00
9.50
$980,224
$962,343
-1.8%
Ottawa County
4.5
1.350
N/A
N/A
$499,853
$600,903
20.2%
Owasso
4.5
1.017
3.00
8.52
$2,843,042
$2,971,477
4.5%
Pryor
4.5
1.375
3.75
9.63
$1,081,202
$1,127,961
4.3%
Rogers County
4.5
1.500
N/A
N/A
$1,556,493
$1,671,277
7.4%
Sand Springs
4.5
1.017
3.50
9.02
$1,501,723
$1,695,495
12.9%
Sapulpa
4.5
1.000
4.00
9.50
$1,895,172
$2,018,583
6.5%
Tahlequah
4.5
2.000
2.50
9.00
$1,115,268
$1,163,719
4.3%
Tulsa (City of)
4.5
1.017
3.00
8.52
$33,418,757
$34,289,361
2.6%
Vinita
4.5
2.000
3.00
9.50
$458,877
$473,130
3.1%
Washington County
4.5
1.000
N/A
N/A
$952,201
$965,880
1.4%
Source: Oklahoma Tax Commission
*Washington County's sales tax rate increased from 0.5% TO 1.0% in Nov 2009
$175,000
$275,000
$375,000
$475,000
$575,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Figure 13: Washington County Sales Tax Collections by Month,
2010-2012 Fiscal Years
2010
2011
2012
$1,000,000
$1,100,000
$1,200,000
$1,300,000
$1,400,000
$1,500,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Figure 14: Bartlesville Sales Tax
Collections by Month,
2010-2012 Fiscal Years
2010
2011
2012Economic Indicators September 2011 Volume 9, Number 9
Lodging Tax Collections
Lodging tax collections reflect the level of expenditures from tourism and travel. Visitors attracted to local activities spend money within the local area. Merchants use these monies to pay salaries of their employees and purchase goods and services used in their businesses. In turn the employees spend their income for goods and services. This cycle repeats several times. The total economic impact of the initial tourist expenditure increases as each newly spent dollar circulates through the local economy. If a fraction of each dollar is saved or is spent outside the local economy, the total economic impact is reduced. The figure shown illustrates the amounts of lodging tax collections distributed to the Claremore Convention Visitors Bureau.
Source: Oklahoma Tax Commission
Electric and Water Meters
A good indicator of Claremore’s rate of growth can be obtained by comparing the change in the number of residential and commercial electric and water meters. Changes in the number of electric and water meters within a given area are indicators of new or waning demand for services. Frequently, an increase in meters may be attributed to new construction although meters may also increase due to an expansion of services to existing buildings.
Source: City of Claremore
Source: City of Claremore
Building Permits
Residential building permits are a good indicator of housing demand and of construction industry health. They represent the number of new, single-family buildings or homes where construction will soon begin. Although residential buildings are classified as investments, it is new commercial and industrial building permits that represent additions to the economy’s productive capacity and capital stock. New commercial and industrial buildings create not only an increase in initial construction jobs, but also create employment demand within the expanding industries. Moreover, they increase the demand for related jobs, such as those in education, sales, real estate, medical, and other public services
$4,000
$6,000
$8,000
$10,000
$12,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Figure 15: Lodging Tax Collections,
Claremore, 2010-2012 Fiscal Years
2010
2011
2012
935
940
945
950
955
960
965
970
975
980
985
990
6450
6500
6550
6600
6650
6700
6750
6800
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Commercial
Residential
Figure 16: Water Meters,
Claremore, 2010-2011
Residential 2010
Residential 2011
Commercial 2010
Commercial 2011
1370
1380
1390
1400
1410
1420
1430
1440
1450
9600
9650
9700
9750
9800
9850
9900
9950
10000
10050
10100
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Commercial
Residential
Figure 17: Electric Meters,
Claremore, 2010-2011
Residential 2010
Residential 2011
Commercial 2010
Commercial 2011Economic Indicators September 2011 Volume 9, Number 9
within the surrounding community. While residential building permits represent the current state of the housing and construction industry health, new commercial and industrial building permits predict the future of economic health of the community and entire economic region.
Table 3: Total Number of Permits, Calendar Year-to-Date
Type/Date
Rogers County
Claremore
Catoosa
Aug
YTD
Aug
YTD
Aug
YTD
Resi-
dential
2011
22
150
4
30
N/A
N/A
2010
20
160
3
26
3
83
Com-mercial
2011
1
17
3
16
N/A
2
2010
2
12
3
14
1
21
Indus-trial
2011
N/A
N/A
0
3
N/A
N/A
2010
N/A
N/A
0
0
N/A
N/A
Source: Catoosa, Claremore, and Rogers County Planning Commissions
*Industrial figures for Rogers County and Catoosa are combined with commercial figures
Table 4: Total Monetary Value of Permits,
Calendar Year-To-Date
Type/Date
Rogers County
Claremore
Catoosa
Aug
YTD
Aug
YTD
Aug
YTD
Resi-
dential
2011
3,473
20,320
458
2,636
N/A
N/A
2010
2,742
23,889
490
2,291
11
859
Com-
mercial
2011
40
7,758
7,766
10,254
N/A
48
2010
154
984
391
15,197
20
182
Indus-
trial
2011
N/A
N/A
0
319
N/A
N/A
2010
N/A
N/A
0
0
N/A
N/A
Source: Catoosa, Claremore, and Rogers County Planning Commissions
*Industrial figures for Rogers County and Catoosa are combined with commercial figures
**Figures are rounded and in thousands of dollars
Real Estate
The main determinants of the demand for housing are demographic. However other factors like income, price of housing, cost and availability of credit, consumer preferences, investor preferences, price of substitutes, and price of complements all play a role. The core demographic variables are population size and population growth: the more people in the economy, the greater the demand for housing. But this is an oversimplification. It is necessary to consider family size, the age composition of the family, the number of first and second children, net migration (immigration minus emigration), non-family household formation, the number of double family households, death rates, divorce rates, and marriages. In housing economics, the elemental unit of analysis is not the individual but the household.
Source: Northeast Oklahoma Real Estate Services
*Value of Sales shown in millions
Source: Northeast Oklahoma Real Estate Services
*Value of Sales shown in millions
Labor Market Information
Labor market information consists of the local number of labor force participants, the total number employed, and the percentage of labor force participants unemployed. The change in number of jobs on the payrolls of business, government, and non-profit establishments each month is a more accurate indicator of labor market health than the
0
10
20
30
40
$0
$1
$2
$3
$4
$5
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Figure 18: Real Estate Sales
Claremore, 2010-2011
Value of Sales/10
Value of Sales/11
Number of Sales/10
Number of Sales/11
0
20
40
60
80
100
120
$0
$5
$10
$15
$20
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Millions
Figure 19: Real Estate Sales
Rogers County, 2010-2011
Value of Sales/10
Value of Sales/11
Number of Sales/10
Number of Sales/11Economic Indicators September 2011 Volume 9, Number 9
unemployment rate. The labor force includes all employed persons plus those who are seeking work. The unemployment rate (the percentage of labor force participants without a job and actively seeking work) is based on a monthly survey. The unemployment rate is sensitive to changes in the size of the labor force. For example when unemployed workers become discouraged because they cannot find work and stop looking for work, they are no longer in the labor force. This causes a decline in the unemployment rate. If these discouraged workers later enter the workforce by seeking a job, the unemployment rates increases. Likewise the influx of new people entering the labor market for the first time may cause an increase in unemployment rates. Consequently unemployment rates can increase even though total employment has increased. Changes in the unemployment can also result from seasonal changes such as the influx of new high school and college graduates who seek employment. A county’s unemployment rate is not necessarily a worrisome event if the number employed increased at the same time. Low unemployment rates are good for job seekers, retail merchants, and taxing entities; however, the increase in purchasing power tends to cause the price of land and real estate to rise within a county. Consequently, like many other economic factors, there are both positive and negative aspects to low unemployment. A few positive results are that low unemployment rates are typically accompanied by a drop in the crime rate, a reduction in welfare recipients, and an increase in concern and care for the elderly, children, and the mentally challenged.
Source: Bureau of Labor Statistics
*Data is not seasonally adjusted
*County unemployment rates are unavailable
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
Figure 20: Unemployment Rates
Craig
Delaware
Mayes
Nowata
Ottawa
Rogers
Washington
Oklahoma
USEconomic Indicators September 2011 Volume 9, Number 9
RSU Innovation Center’s Business Intelligence Center
Rogers State University established the Innovation Center to foster economic development and address the educational needs of business and industry in northeastern Oklahoma. One of the primary functions of the Center is to assist entrepreneurs who wish to start or expand their business. The professional staff at the Center provides assistance with business plans, financial planning, management, marketing, production, and workforce training. Most services are provided free of charge. The Center is also a regional research and community data center. The Oklahoma Department of Commerce has designated the Center as an affiliate of the Business and Industry Data Center Program (BIDC). As an affiliate of the BIDC, the Center provides information, training, and technical assistance to government, academic, and other non-profit organizations that directly serve business. In addition, the Center also conducts applied research that focuses on the regional economy and population of northeastern Oklahoma. The Center can also assist businesses with feasibility and marketing studies as well as survey research services. For additional information on services, visit our website at www.rsu.edu/innovation or contact:
Dr. Ray Brown,
Vice President of Economic & Community Development
(918) 343-7533
innovation@rsu.edu
Space is now available to accommodate technology-oriented companies
in the start-up phase or early stages of their development.
Located in the newest and most comprehensive entrepreneurial centers in northeastern Oklahoma, the Innovation Center provides resources and services to help bring innovative business ideas to life. Facilities are available in Bartlesville, Claremore, and Miami.
Find out how the Innovation Center can help turn your vision into a reality!
Rogers State University does not discriminate on the basis of race, color, national origin, sex, age, religion, disability, or status as a veteran in any of its policies, practices, or procedures. This includes, but is not limited to admissions, employment, financial aid, and educational service.