Oklahoma City reports increase in sales tax collections

Higher than projected sales and use tax collections show Oklahoma City’s economy continues to roll. 

According to the City of Oklahoma City, July’s general fund collections were higher than the same month last year, and higher than the combined monthly projection. 

Sales tax is the largest single source of revenue for Oklahoma City’s general fund which pays for day-to-day operations. Use tax is the second largest source. 

The city collected around $62 million in sales and use tax revenue during the July reporting period. The period covers the last half of May and estimated collections in the first half of June.  

Sales tax comes from retail sales in Oklahoma City. Use tax comes from goods purchased elsewhere and shipped or brought to Oklahoma City, including online sales. 

The overall sales tax rate in most of Oklahoma City is 8.625%. For each dollar in taxable sales, 4.125 cents goes to the city. The rest goes to the State of Oklahoma. Of that 4.125 cents allotment, 2.25 cents goes to the general fund; one cent to MAPS 4; three-fourths of a cent to the Oklahoma City police and fire departments; and one-eighth of a cent to the Oklahoma City Zoo.     

July’s general fund sales tax collections were about $28 million, about 3.5% above the projection and 4.4% above the same month in 2022. 

General fund use tax collections, which typically fluctuate more than sales tax collections, were about $7.9 million for July. That’s about 9% above the projection and 8.5% higher than in the same month last year.