Rising income tax receipts helped lift state tax revenue in January by 10.2 percent, compared to the same period a year ago, state finance officials said Tuesday.
Income tax collections to the general revenue fund, the state's main operating fund, were $578.3 million in January, the highest monthly total for the first seven months of the current fiscal year. The amount is an increase of $53.4 million, or 10.2 percent, compared with last January.
Income tax collections are outperforming expectations by double digits through the first seven months of 2013 fiscal year, which began July 1, said state Finance Secretary Preston Doerflinger.
Net income taxes over the seven-month period are above estimates by almost 15 percent and personal income taxes are above estimates by 10 percent, he said.
Net dollars collected from income taxes over seven months are up 10.1 percent compared with last year.
“That's a definite positive trend,” Doerflinger said.
In January, combined personal and corporate income tax receipts totaled $281.5 million, beating collections from the previous year by $46.1 million, or 19.6 percent, according to the state Office of Management and Enterprise Services, which compiles the revenue reports.
Individual income tax collections reached $255.9 million for the month, exceeding the total for January 2012 by 20.2 percent and the estimate by 21.1 percent.
Gov. Mary Fallin said the double-digit revenue growth of income tax collections is a sign that Oklahoma's economy is headed in the right direction and that she intends to pursue “a measured, responsible tax cut in 2013.”
Fallin asked legislators last week to consider cutting the top rate of the state's personal income tax rate, dropping it from 5.25 percent to 5 percent. A reduction of that amount would cost the state about $40 million in the 2014 fiscal year and about $120 million annually when fully implemented.
Doerflinger said sales tax collections for the first seven months of this fiscal year have increased from a year ago by 6.8 percent and are running 1.4 percent ahead of the estimate for that time period.
“These figures are evidence of continued economic expansion,” Doerflinger said.