City Of Oklahoma City: Oklahoma City's June Sales And Use Tax Summary

Press release from the City of Oklahoma City:

06/24/2021 8:50 AM

Oklahoma City’s June sales and use tax report shows combined General Fund collections nearly matched May’s all-time record, a significant increase compared to this month last year and far above the monthly projection.

The nearly record-breaking numbers are likely due to much busier retail activity compared to last year during a more intense period of the pandemic, pent-up demand as people continue venturing out more, and federal stimulus checks.

The General Fund pays for the City’s day-to-day operations. Sales tax is the General Fund’s largest single source of revenue, and use tax is the second largest.

The June report includes tax collections for the last half of April and estimated collections in the first half of May. June is the final month of fiscal year 2021.

Read the General Fund’s full June sales and use tax report here.

Sales tax summary

General Fund sales tax collections for June were about $24.3 million. That’s around $4.9 million (25.2%) above the projection and $6.5 million (36.8%) above the same month last year.

General Fund sales tax revenue finished the fiscal year 2.8% (about $7 million) above the projection and 2.4% (about $6.1 million) above last year.

Use tax summary

General Fund use tax collections, which typically fluctuate more than sales tax collections, were about $4 million for June. That’s around $1.3 million (24%) below the projection and $640,000 (13.7%) below the same month last year.

The decline is attributable to one company’s significant refund for a years-old overpayment. Excluding the refund, use tax collections would have been 44% higher than the same month last year.

General Fund use tax revenue finished the fiscal year 2.2% (about $1.6 million) above the projection and 14% (about $9 million) above this point last year.

About sales and use tax

Sales tax comes from retail sales in Oklahoma City. Use tax is charged at the same rate and comes from goods purchased elsewhere and shipped or brought to Oklahoma City, like online sales or equipment not available from Oklahoma suppliers.

The overall sales tax rate in most of Oklahoma City is 8.625%, and 4.125 cents of each dollar in taxable sales goes to the City. Of that, 2 ¼ cents is allocated to the City’s General Fund, one cent goes to MAPS 4, three-fourths of a cent is dedicated to Police and Fire, and one-eighth of a cent goes to the Zoo. The rest of the sales tax belongs to the state.

The City collected around $49.8 million in total sales and use tax revenue during the June reporting period, including collections for the General Fund, Police, Fire, the Zoo and MAPS 4. The City collected about $572.9 million in total sales and use tax revenue during fiscal year 2021.

Learn more about municipal taxes in Oklahoma City at okc.gov/tax.

Note: Oklahoma City businesses located in Cleveland, Canadian and Pottawatomie counties collect a slightly higher sales tax rate due to county sales tax.

Media Contact
Kristy Yager
(405) 297-2550
kristy.yager@okc.gov

This press release was produced by the City of Oklahoma City. The views expressed here are the author’s own.