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November Economic Report–State of Oklahoma

OER November 2023
As expected, declining revenues from oil and gas production push Gross Receipts slightly down. Receipts to the Treasury for the last 12 months of $17.05 billion are $312 million, or 1.8 percent, below collections from the previous year.
Revenue from the state’s Gross Production Tax dropped $565 million over last 12 months, down by 29 percent for the year.

Taxes from all sources in November total $1.3 billion. Continuing recent monthly trends, the November total receipts are down by $23 million, or 1.8 percent.

In addition, the previous month comparison shows a decline from October to November of $113 million, or 8 percent.

OTHER INDICATORS

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The Oklahoma Business Conditions Index plunged in November falling below growth neutral for the first time in three months. The November index was set at 43.2, compared to 53.0 in October.

According to the U.S. Bureau of Labor Statistics, the November unemployment rate in Oklahoma was 3.2 percent. Meanwhile, the U.S. unemployment rate rose to 3.9 percent in October, up 0.1 percent from the previous month.

As measured by the Consumer Price Index, the annual inflation rate decreased to 3.1 percent in November. The energy component of the index continued to slide downward as and the food index fell just below the overall inflation rate.

12-Month Gross Receipts
Combined gross receipts for the past 12 months compared to the prior year show:

  • Gross revenue totaled $17.05 billion, $311.7 million, or 1.8 percent, below the previous 12 months.
  • Gross income taxes generated $6 billion, an increase of $2.5 million, or 0.1 percent.
  • Combined sales tax and use tax produced $7.1 billion, an increase of $277.2 million, or 4.1 percent.
  • Oil and gas gross production taxes are $1.38 billion, a decrease of $564.7 million, or 29.1 percent.
  • Motor vehicle taxes total $877.7 million, up by $2.8 million, or 0.3 percent.
  • Other sources generated $1.64 billion, down by $29.5 million, or 1.8 percent.
November Gross Receipts
Comparing gross receipts from November 2023 to November 2022 show:

  • Total monthly revenues are $1.3 billion, down by $23.1 million, or 1.8 percent.
  • Income taxes – a combination of individual income taxes and corporate income taxes – generated $395.4 million, an increase of $26.3 million, or 7.1 percent.
  • Combined sales tax and use tax – including remittances on behalf of cities and counties – total $595 million, an increase of $1.8 million, or 0.3 percent.
  • Gross production taxes on oil and natural gas total $105.8 million, a decrease of $44.9 million, or 29.8 percent.
  • Motor vehicle taxes produced $64.2 million, an decrease of $2.8 million, or 4.2 percent.
  • Other sources, composed of some 60 different sources, produced $130.6 million, a decrease of $3.5 million, or 2.6 percent.
Revenue Sources

Gross Receipts to the Treasury

Compared to last month, Gross Receipts in November decreased $112.7 million.

About the Oklahoma
Economic Report

The monthly Oklahoma Economic Report, developed by the office of State Treasurer Todd Russ, provides a timely and broad overview of the state’s economy.

GR
Economic Indicators

Over the last twelve months, Gross Production Tax totaled $1.38 billion.

The graph shows the monthly receipts from the Gross Production Tax (GPT) for the past year. The GPT is the Oklahoma severance tax imposed on producers for the extraction of oil and natural gas.

The revenue received from the GPT fluctuates widely because of the volatile nature of commodity prices and production levels. In response, the Revenue Stabilization Fund was created by the Legislature in 2016 to smooth out the peaks and valleys. This fund receives deposits from the gross production tax and corporate income taxeswhen they are above the five-year rolling average. The savings can then be used to offset future budget shortfalls.

GPT

November’s average WTI Crude Oil Price was down almost $8 from the prior month, settling at $77.69.
Oil

As of the end of November, the Dow closed at 35,950.89.
Index

The Oklahoma component of the Index also dropped in November, slipping to 43.2 from 53.0 the previous month.
Index 2

The most up-to-date data shows the U.S. jobless rate rose 0.1 percent to 3.9 percent in October, while Oklahoma’s unemployment increased for the month ending at 3.2 percent, up by 0.2 percent.
Unem

The U.S. Bureau of Labor Statistics reports the annual inflation rate remained at 3.1 percent in November. The energy component of the index showed a substantial decline while the food index fell slightly below the overall inflation rate.
Index 3

As of November, the national average price was $3.238 per gallon, with the lowest regional rates found in the Midwest and Southeast and the highest costs seen on the West Coast.
Gas

Average 30-year fixed rate mortgage from January 2000 through November 2023.
Mortgage

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