City of Tulsa sales and use tax collections in the first quarter of fiscal year 2021 were $5.3 million ahead of conservative estimates in the budget.
If that trend continues throughout FY21, collections will be $7.5 million over projections, a good chunk of an expected $13 million shortfall.
But Mayor G.T. Bynum told city councilors on Wednesday he is not banking on that happening.
"We’ve had a good summer, but the cause for concern, at least from my standpoint, is moving into winter months when outdoor dining is not the option that it was during a mild summertime and when you will see the impact from some of these job losses in important economic sectors," Bynum said.
Bynum said the city will continue half-day employee furloughs on Fridays through the end of the year as planned and will determine next month whether those need to be extended.
City officials are also wary because a recent state tax commission report estimated the U.S. Supreme Court’s ruling in McGirt v Oklahoma that the Muscogee (Creek) Nation was never disestablished could result in a $6.1 million annual loss in sales tax collections.
And lodging tax revenue continues to be about 40% of normal collections. Bynum said the city budget assumed normal lodging tax collections starting in November and will come up $1.2 million short there if current trends continue.
"The major concern is that we have major facilities here in Tulsa that the city owns, much of which the operations are assisted with hotel/motel tax revenue and by revenue derived from events held at those facilities," Bynum said.
Nearly half of lodging tax revenues go toward maintaining and operating the Performing Arts, BOK and Cox Business Convention centers. About $700,000 a month is being spent from a $12 million reserve fund to keep the BOK and Cox centers in working order.
