Oklahoma City's latest financial report paints a mixed picture for its General Fund, with sales tax collections nudging a slight increase over last year but use tax revenue falling short of expectations. The General Fund, which is critical for the city's day-to-day operations, primarily relies on sales and use taxes—these taxes being the largest and second-largest sources of revenue, respectively.
According to the City of Oklahoma City's official news release, for May, the General Fund sales tax collections reached about $28.5 million, which surpassed projections by $191 thousand or 0.7%. Running behind last year’s figures, however, the sales tax revenue traveled 0.7% below, about $2.0 million less at this fiscal year-to-date.
In what appears to be a more volatile revenue stream, the use tax collections for the General Fund presented a less-than-projected figure of $9.0 million, coming in $287 thousand, or 3.1%, under the projection. However, compared to the previous year, this was an upturn with a modest increase of $420 thousand, or 1.1%, from the same month. The fiscal year-to-date figures are still in the red, though, with a 4.5% shortfall amounting to approximately $4.4 million.
Sales and use taxes are derived from different sources; sales tax is collected from retail sales within the city, while use tax applies when goods are purchased elsewhere but shipped or used in Oklahoma City—this includes online sales and items brought in that aren't available from local suppliers. The composite sales tax rate for most of Oklahoma City stands at 8.625%, with 4.125 cents of each dollar in taxable sales flowing to the City’s coffers, divided among various needs such as the General Fund, MAPS 4, and public safety initiatives.
In total, Oklahoma City amassed approximately $64.2 million in sales and use tax revenue during May's reporting period, as per the report. This sum contributes to various city services including the General Fund, Police, Fire, Zoo, and MAPS 4.
