2019 ended with signs of a slowing state economy.
Oklahoma Deputy Treasurer Tim Allen said it’s clear when they look at gross receipts quarter-by-quarter.
"The first two quarters of 2019 were very strong. We saw growth of almost 10% each of those two quarters. But then in the third quarter, it dropped to just over 4%. In the fourth quarter, we actually saw a contraction in gross receipts of 0.5%," Allen said.
That puts 2019’s total state revenue growth rate at 5.7%, down from 13.2% the year before.
"Oh, there is one major factor, and that is oil and gas prices," Allen said.
With oil and gas prices stuck in a slump, gross production tax collections were down from the prior year for the entire last quarter of 2019. Low energy prices also affected sales and use tax collections.
"Looking at the detail on the tax collection records on use tax and on sales tax, the slowdown appears to primarily be coming from less purchasing of oilfield equipment, related equipment, things like that," Allen said.
Gross production tax collections in December were down almost 40% from the prior year.
