May tax receipts show uptick in online shopping

May tax receipts show uptick in online shopping

By Ken Childers

ONL Editor

Use tax collections were up across Okfuskee County in May, a sign that consumers did more shopping from the comfort of their homes rather than visit brick and mortar stores.

Following a trend that began several months ago, the City of Okemah and Okfuskee County both received use tax disbursements this month that were significantly higher than what was received one year ago. Use tax is collected when goods are purchased outside of Oklahoma, online or otherwise, then used inside the state.

According to the Oklahoma Tax Commission (OTC), the city’s use tax disbursement totaled $19,747.80, a 70 percent increase over last July’s amount of $6,001.95. The OTC deposited $28,589.08 into the Okfuskee County coffers, $16,737.62 more than what was deposited one year ago. The July disbursement was based primarily on transactions conducted in May.

While both entities saw large gains in use tax receipts with the July disbursement, local sales tax revenue was up only slightly for the city and the county’s sales tax disbursement was down as compared to July 2019.

The city received a sales tax disbursement in the amount of $107,910.24, up three percent over the previous year, when the amount was $104,881.06. Okfuskee County’s disbursement totaled $105,691.08, an eight percent decrease from July 2019. One year ago, the county received $114,190.72.

Sales tax collections around the county
Boley realized a 41 percent decrease from July 2019 with a disbursement of $7,495.47; Castle’s amount of $1,684.28 was up 19 percent over the previous year; Clearview received $166.96; Paden saw a 31 percent increase with a disbursement of $16,524.30 and Weleetka received $23,325.14, up 34 percent over this time last year.

The towns of Boley and Weleetka also received use tax disbursements this month. Boley’s distribution totaled $2,322.00, up 62 percent over July 2019 and Weleetka saw a 69 percent increase with a disbursement of $4,419.21

Sales tax collections for other nearby cities and towns

Bristow: $354,486.69 (+16 percent)

Henryetta: $275,214.26 (+16 percent)

Okmulgee: $621,199.56 (+7 percent)

Prague: $98,078.17 (+12 percent)

Wetumka: $39,473.19 (-14 percent)

Use tax collections were up over July 2019 in each of the cities listed above.

The July distribution of sales tax collections by the Oklahoma Tax Commission primarily represents local tax receipts from May business. Companies that remit more than $2,500 monthly in sales tax receipts are required to file and pay electronically. The monies they reported this period represent sales from May 16 – May 31 and estimated sales from June 1 – June 15.