Overall collections to the Oklahoma treasury are beginning to slow, fueled in large part by declining tax collections on oil and natural gas production, Oklahoma Treasurer Randy McDaniel announced on Monday.
Gross receipts during 2019 were nearly 6% more than during 2018, but collections began to slump toward the end of the year, McDaniel said in a statement.
“Recent economic trends appear to be primarily related to low oil and gas prices,” McDaniel said. “We are seeing both a direct and spillover effect on some tax collections due to suppressed energy prices.”
Tax collections on oil and natural gas production have trailed prior-year collections for four consecutive months, while sales tax receipts have contracted for six of the last seven months, the treasurer’s office reported.
Natural gas prices have dropped nearly 30% and oil prices are down by about 25% from the same time last year, McDaniel reported.