Oklahoma marks record in monthly sales tax collections

“It is great news that sales tax receipts reached an all-time high and our economy is continuing to grow,” Fallin said. “I am encouraging legislators to see this as an opportunity, not to grow government or to spend more on government bureaucracy, but to pursue a bold plan to cut taxes and allow Oklahomans to keep more of their hard-earned money.”

Oklahomans went on a buying spree in late December and early January as sales tax collections for the state's general revenue fund, the main source of state funding, totaled $165 million in January, the report shows.

“This is the largest amount of money we have ever collected from sales taxes in any month of any year ever in Oklahoma,” state Finance Director Preston Doerflinger said.

“Consumer confidence appears to be high early in the second half of the 2012 fiscal year.”

Fallin last week released the outline of her plan to reduce and gradually eliminate the state's personal income tax in her State of the State speech that started this year's legislative session. Fallin's plan calls for reducing the top 5.25 percent rate to 3.5 percent next year, and reducing the number of income tax brackets from seven to three, with individuals earning less than $15,000 not required to pay personal income taxes. Further cuts in the income tax rate would be an additional quarter point in any year in which the state sees 5 percent revenue growth.

“By passing the tax reduction plan I outlined last week, Oklahoma can continue to build on our recent economic successes by creating a tax climate more conducive to business growth, job creation and statewide prosperity,” Fallin said. “Moving forward, we must also continue to right-size state agencies and to carefully prioritize spending.”