Sales tax posts third consecutive gain

Sales tax is up in Oklahoma City for the third consecutive month.

Collections for the July reporting period increased 1.5 percent from July 2016.

That marks the third consecutive increase in year-over-year monthly sales tax collections, after a lengthy slide that saw reductions in city spending and, most recently, layoffs.

Sales tax is Oklahoma City’s single-largest revenue source.

The city relies on sales tax for day-to-day needs, such as police and fire protection, and a 1-cent sales tax finances MAPS projects.

Voters will be asked Sept. 12 to increase the sales tax by a quartercent, primarily to hire more police officers and firefighters, and to extend the MAPS sales tax for a crash program of street resurfacing and related improvements.

July sales tax is based on retail sales the last two weeks of May and first two weeks of June.

Oklahoma City received $34.7 million on Monday from the Oklahoma Tax Commission after accounting for the state’s $174,000 processing fee and $25,000 in interest.

While up from last July, the figure was still below the budget target of 2 percent growth for the first three months of fiscal 2018.

Cautiously optimistic

Doug Dowler, the budget director, said the general fund, the account for day-to-day expenses, was credited with $17.9 million, $81,175 below the budget target for July.

Dowler said budget officials were optimistic growth would continue through the fiscal year, which began July 1, “but the slow pace of growth in July means we will be moving ahead cautiously.”

The city council approved midyear budget cuts that took effect Jan. 1, as sales tax remained mired in a months-long slump.

Eighteen jobs were cut in the 2017-18 budget approved by the council last month.

Dianna Berry, the personnel director, said this week that three employees were laid off when the new budget took effect.

The authorized workforce had been trimmed last year but reductions were absorbed largely by shifting employees to new assignments and through retirements.

If voters agree on Sept. 12, a quarter-cent will be permanently added to the city’s sales tax rate, raising it above 4 cents for the first time, to 4.125 percent.

Along with the 4.5 percent state sales tax, the overall rate in most of Oklahoma City would be 8.625 percent.