Tax collections indicate strong local economy

Increased year-over-year tax collections indicate healthy trends for the local economy as the City of Oklahoma City exceeds its monthly projections in March. 

Largely operated by sales and use taxes, which serve as the first- and second-largest contributors to the City’s General Fund, the continued success of the city is dependent on reliable collections.  

“Continuing to see sales and use tax collections for the City of Oklahoma City seems to signal ongoing consumer confidence in the fiscal security of the Oklahoma City market,” said Jeff Seymour, executive vice president of economic development for the Greater Oklahoma City Chamber. 

“Over the last several years, we have continued to see strong trends in population, and job growth and with more people and more income comes the opportunity for more spending.” 

The City’s General Fund sales tax collections were nearly 20% higher than projected this year, 15.5% higher than March of last year, accounting for $24.8 million. The fund’s use tax collections – known to fluctuate more often than sales tax collections – dropped just under 3% compared to a year prior. The General Fund use tax revenue, however, is just over 8% above this time last year. 

“I do realize the cost of goods and services has also increased over the last year, but I also see these collections as overall good news for the revenue position of the City and their ability to provide essential and strategic services to benefit Oklahoma City residents,” said Seymour. 

Sales tax is collected from retail sales throughout the city, while use tax is charged at the same rate to goods purchased elsewhere but brought to Oklahoma City, such as through online shopping. 

You can find additional information on General Fund allotments, city processes and more at www.okc.gov.