Sales tax trend reflects growing Oklahoma City economy
The city of Oklahoma City closes the budget year on a fiscal high note.
Sales tax revenue for the June reporting period increased 3.1% from 2018, beating the target for the month.
For the year, the city received $256.3 million for the general fund, the primary account for day-to-day expenses.
That was 0.35% above the budget target set a year ago.
"We are pleased with the way sales tax continues to perform and with what it represents – that the Oklahoma City economy continues to grow," said Doug Dowler, the budget director. "Ending the year just over target also puts us in a good position going into next year."
The June sales tax check from the Oklahoma Tax Commission is the final monthly installment of the fiscal year.
Fiscal 2020 begins July 1.
After deducting $198,000 for processing and adding $50,000 for interest, the Tax Commission transferred a total of $39.5 million to Oklahoma City on Monday.
Sales tax is Oklahoma City's single-largest revenue source, funding services including police and fire protection.
A dedicated sales tax supports the Oklahoma City Zoo and a 1-cent MAPS extension finances Better Streets Safer City street resurfacing and related improvements.
Driven by increasing revenue from online retail sales, use tax revenue was up 15.7 percent over the same month in 2018.
City budget officials are projecting a 2% increase in sales tax and 5% increase in use tax for 2019-20.
Underlying sales tax growth was 3.4% for 2018-19.