(Oklahoma City, Okla.) The impact of falling oil prices has been felt at the State Treasurer’s office where Treasurer Ken Miller announced Monday the gross production tax revenue for March fell to the lowest level in 12 years. It totaled $39.6 million, a 48 percent drop from a year ago. It also compares to the $32.5 million reported in September 2002. The low gross production tax revenue affected monthly revenue collections which were $28 million less than a year ago.
“It’s a pretty significant drop but certainly not unexpected,” Miller said during a news conference. He explained the March revenue is based on January oil-field activity. At that time, crude oil prices averaged $47.66 a barrel compared to the more than $51 a barrel price today. The falling prices and subsequent gross production tax revenue prompted Miller to recently meet with Continental Resources Chairman and CEO Harold Hamm and Devon Energy Chairman Emeritus Larry Nichols. Both indicated they believe oil prices will rebound in the coming year.
Otherwise, March gross collections for the state totaled $957.32 million, a drop of $27.71 million from March a year ago. It amounted to a 2.8 percent drop, only the second time since June 2013 that total collections were below the same month of the previous year. Personal income tax collections for March totaled $299.76 million which was an increase of $12.7 million or 4.4 percent from March of 2014.
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