Oklahoma City's financials aren't looking too bright this month. In the November sales and use tax summary, both General Fund collections were lower compared to last year and failed to meet projected figures for the current period. This is particularly concerning since the General Fund is where the City banks on to manage its day-to-day operations—with sales tax being its chief revenue stream followed by use tax, according to the latest City of Oklahoma City report.
For November, Oklahoma City's General Fund sales tax collections were approximately $25.7 million, which is not only $2.1 million (7.6%) below the projection but also $1.7 million (6.3%) under the total from the same month last year. This decline is part of a worrying trend that's seen sales tax revenue also fall about 4.2% (roughly $5.9 million) below what was expected for the fiscal year to date, and further 3.0% (about $4.2 million) behind last year’s pace—an indication that consumer spending within the city might have been hit hard, as reported by the City of Oklahoma City.
Despite the downturn in sales tax, the use tax collections showed some minor signs of resilience. In November, Oklahoma City gathered close to $8.0 million in General Fund use taxes, which is slightly below projection by $379 thousand (4.5%). However, it does hold a small gain of $204 thousand (2.6%) over the same month in the previous year. This slight uptick, though, has not been enough to keep overall use tax revenue from staying behind schedule—with figures approximately 4.9% (or around $2.1 million) below the fiscal year projections to date, as detailed by the City of Oklahoma City.
Oklahoma City relies on a sales tax derived from retail sales within its territory, while the use tax applies to purchases made outside the city that are brought in—such as online shopping. Not to be overlooked, the current overall sales tax rate in most of Oklahoma City sits at 8.625%, with the City pocketing 4.125 cents from every dollar in taxable sales. This revenue is parcelled out to various city services, including the General Fund, MAPS 4, as well as Police, Fire, and the Zoo—with the state claiming the remaining share.
During the period covered in the November report, the City collected an aggregate of around $57.9 million in total sales and use tax revenue. This includes not only the finances for the General Fund but also for essential city services such as Police, Fire, the Zoo, and the MAPS 4 program, as per the City of Oklahoma City.
