Oklahoma City Sales & Use Tax Collections

[Laramie]

Oklahoma City Sales & Use Tax Collections (February 2, 2021 Report): https://www.okc.gov/home/showpublisheddocument?id=21350

The City's sales & use tax collections for 2021 vs. prior year 2020. Will this affect MAPS 4 projects...

[mugofbeer]

Not to be a negative nellie but l bet the snowstorm kills February's collections.

[Laramie]

Not to be a negative nellie but l bet the snowstorm kills February's collections.

You can believe that.

Oklahoma City doesn't seem to have been hit any harder than most cities in our category with 500,000 to 1 million urban population.

IMO with the current pandemic and fewer development projects being built; this will be a banner time (2022-28) for MAPS 4 projects. Don't think you will see a ton of construction projects; therefore this should favor the bidding process as these projects will come under projected budget.

Personally, I think the city learned from previous MAPS projects. The budgeted price tag for each project--allowed some flexibility for inflation. Look for the new State Fair Coliseum and the Chesapeake Energy Arena improvements (in no uncertain order) to received first bids. Sales tax collections are in the -5% which means MAPS collections are similar.

[DowntownMan]

Not to be a negative nellie but l bet the snowstorm kills February's collections.

Today is making up for some of that. Seems everyone is out as stores are super busy today.

[Laramie]

9 States With No Income Tax

https://www.investopedia.com/financi...ncome-tax.aspx

(Active Map inside above link)

[BoulderSooner]

Washington state is a big outlier in that list ..

[HOT ROD]

we're always the outlier, forgotten state. lol

[mugofbeer]

I bet it would change fast if Ok were to eliminate the corporate sales tax. I mean.. Texas rate 0%.. Oklahoma rate 6%.. lt's a no brainer for a business.

[ChrisHayes]

I bet it would change fast if Ok were to eliminate the corporate sales tax. I mean.. Texas rate 0%.. Oklahoma rate 6%.. lt's a no brainer for a business.

Yep! And that's one of the reasons Texas attracts so many business headquarters to the state.

[HOT ROD]

so really, what do people recommend OK do to compete. Themes I hear often are:

* revise the school districts. Not necessariliy eliminate/combine them but get rid of the cushy admin jobs that themselves could be combined which therefore would send more $$ to teachers and supplies/equipment/resources

* eliminate (or incentivize) the Corporate Tax. Provide incentives for businesses that move here and those that grow/expand. Reduce overall burden closer to zero for everyone else.

* raise the gas tax. Dont need to be the lowest in the region/country, we can raise it to get funding for transit, roads and transportation yet still be the lowest in the region.

* eliminate the state income tax. marginally increase property taxes to offset.

* allow cities and/or regional governments to collect property tax for operations

* get rid of the commissioner form of government. We only need one exec (not 3).

* more USER type of taxes. For example, airport improvement tax on air tickets, gas tax for transit, sin tax for health care and education. I know we do this, but revise/do it better and more targeted

* allow for city corporations to be independent of the city. OKC needs a real water trust, that can administer on land that's NOT part of OKC. This would allow OKC to really deannex yet the trusts could still administer said resources by extension of the city.

Here in the Seattle area we do this by the county - King County Metro, which runs the water and sewer as well as "local" transit within the county. There is also the regional Sound Transit but that's specific to roads and regional transit. Metro runs water resources well far away from Seattle itself (which is only 86 square miles as a result). OKC could adopt a similar model (getting us down to a much better 400 square miles that are truly occupied).

* I also think Oklahoma should get out of the business of overseeing cities. Focus instead on state level issues and let the local governments run day-to-day business while the state removes obstacles and provides nurture to benefit everyone.

Any other ideas?

[Laramie]

Oklahoma City shoppers continued to come out in full force in April and May.

Last week’s $44.4 million sales tax check is the second-largest the city has ever received, coming in just under May’s record-setting $47.1 million. This month’s check was an increase of 36.8% compared to last June and 12.6% compared to June 2019.

Oklahoma City Budget Director Doug Dowler attributes the gains to federal stimulus money and pent up demand from the public.

“The June sales tax check continued to show the dramatic turnaround in the economy that has occurred in the past year,” Dowler said. “We are projecting higher sales tax collections for fiscal year 2022 than this year and the total would be bigger than fiscal year 2019, pre-pandemic, or 2020, which was affected in the last two months by the pandemic,” he said. “I think that is due to several factors —bigger population and workforce in Oklahoma City, low unemployment, and the added federal money helping the economy.” Use tax for fiscal 2021, collected on online retail and other out-of-state purchases, totaled $73.5 million, a14% increase from fiscal 2020, Dowler said.

The new budget year begins July 1.--Oklahoman, William Crum & Jana Hayes, June 14, 2021

[mugofbeer]

That's great news!

[Laramie]

Looks as though by the time the city gets ready to build its first project they will have the money available. Still say they've gotten smarter over the years by over estimating what a project will cost. Will insure that there will be leftover funds; this will allow for more enhancements to be done while finishing up what's leftover from the previous MAPS initiative construction.

The projects that get built last will be able to include more amenities.

Remember MAPS is a debt free pay as you build mechanism.

[Laramie]

Mayor David Holt
@davidfholt

July
For the third straight month, our @cityofokc
sales tax check has topped what had been the record three months ago. This month’s total collection was $45 million. Our local economy continues to roar!

Note: June it was $44 million

[Laramie]

Oklahoma City’s January sales and use tax summary:

Sales tax summary

General Fund sales tax collections for January were around $26.8 million. That’s around $4.1 million (18.3%) above the projection and $4.8 million (21.8%) above the same month last year.

General Fund sales tax revenue is around 13.6% (about $21.1 million) above the fiscal year-to-date projection and 18.5% (about $27.5 million) above this point last year.

Use tax summary

General Fund use tax collections, which typically fluctuate more than sales tax collections, were around $8.7 million for January. That’s around $1.3 million (17.2%) above the projection and $2 million (28.9%) above the same month last year.

General Fund use tax revenue is around 6.5% (about $3 million) above the fiscal year-to-date projection and 17.1% (about $7.2 million) above this point last year.

About sales and use tax

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 to Oklahoma City, like online sales or equipment not available from Oklahoma suppliers.

The overall sales tax rate in most of Oklahoma City is 8.625%, and 4.125 cents of each dollar in taxable sales goes to the City. Of that, 2 ¼ cents is allocated to the City’s General Fund, one cent goes to MAPS 4, three-fourths of a cent is dedicated to Police and Fire, and one-eighth of a cent goes to the Zoo. The rest of the sales tax belongs to the state.

The City collected around $61 million in total sales and use tax revenue during the January reporting period, including collections for the General Fund, Police, Fire, the Zoo and MAPS 4.

Source: City of Oklahoma City website

[Laramie]

City Manager Report
The City of
OKLAHOMA CITY
NO: 1790 - DATE: FEBRUARY 1, 2022
TO: THE MAYOR AND MEMBERS OF THE CITY COUNCIL
SUBJECT: JANUARY 2022 SALES AND USE TAX COLLECTIONS

Link: https://www.okc.gov/home/showpublish...93859076730247

[Laramie]

Oklahoma City’s May sales and use tax summary
Post Date:05/24/2022 1:11 PM

Sales tax summary

General Fund sales tax collections for May were around $27.6 million. That’s around $1.8 million (7%) above the projection and $1.9 million (7.7%) above the same month last year.

Link: https://www.okc.gov/Home/Components/...govdelivery#!/

[Laramie]

Sales tax summary

General Fund sales tax collections for June were around $26 million. That’s around $1.5 million (6%) above the projection and $1.7 million (7.1%) above the same month last year.

General Fund sales tax revenue is around 0.4% (about $1.1 million) above the fiscal year-to-date projection and 16.4% (about $42.6 million) above this point last year.

Use tax summary

General Fund use tax collections, which typically fluctuate more than sales tax collections, were around $8.2 million for June. That’s around $2.7 million (49.3%) above the projection and $4.2 million (103.1%) above the same month last year.

General Fund use tax revenue is around 3.1% (about $2.6 million) above the fiscal year-to-date projection and 17.7% (about $13 million) above this point last year.

[BoulderSooner]

Sales tax summary

General Fund sales tax collections for June were around $26 million. That’s around $1.5 million (6%) above the projection and $1.7 million (7.1%) above the same month last year.

General Fund sales tax revenue is around 0.4% (about $1.1 million) above the fiscal year-to-date projection and 16.4% (about $42.6 million) above this point last year.

Use tax summary

General Fund use tax collections, which typically fluctuate more than sales tax collections, were around $8.2 million for June. That’s around $2.7 million (49.3%) above the projection and $4.2 million (103.1%) above the same month last year.

General Fund use tax revenue is around 3.1% (about $2.6 million) above the fiscal year-to-date projection and 17.7% (about $13 million) above this point last year.

the one good thing about inflation it doesn't reduce tax collections it boosts them

[ChrisHayes]

the one good thing about inflation it doesn't reduce tax collections it boosts them

Yeah, but you also have to take into account the cost of everything goes up. Then, you might also hit a point where discretionary spending begins to suffer as people prioritize essentials. At that point, you might have tax revenue decrease a bit.

[chssooner]

the one good thing about inflation it doesn't reduce tax collections it boosts them

Ah, you have forgotten about the law of diminishing returns (see what Chris posted). At a certain point, people stop spending as much, but the city will still have their expenses that keep going up because of said inflation.

[BoulderSooner]

Ah, you have forgotten about the law of diminishing returns (see what Chris posted). At a certain point, people stop spending as much, but the city will still have their expenses that keep going up because of said inflation.

i agree in the med and long term inflation leads to recession and stagflation ..

[Laramie]

Felt that many of the projects on MAPS 4 initiatives were purposely over projected to begin with. Notice how they start having funds leftover from previous MAPS projects. The 25% - 30% inflation rate will cause the city to trim some of these projects that IMO were over projected to begin with.

Since there doesn't seem to be a big building boom in Oklahoma, therefore, look for many of the bidders to go below bids to make sure they get the projects. Not sure how much they can charge over their bids, but we'll probably get everything built. There's MAPS 4 $87 million for Public Transit for which the city will be able to tap into the Biden Administration's $13 billion in total funding during the 2022–2026 period for new surface transportation programs, potentially including mass transit. HS passenger rail is on a number of cities lists.

[Laramie]

July remittance is made up primarily of actual collections for the last half of May and
estimated collections for the first half of June along with smaller amounts for corrections and
reconciling amounts from prior estimates.

https://www.okc.gov/home/showpublish...ce=govdelivery

[gopokes88]

It's certainly a positive sales tax picture for now