OKC retail rebound appears to strengthen

Sales tax is up 5.1 percent in Oklahoma City, indicating retail sales continue to recover from an extended slump.

Oklahoma City received $35.1 million this week, an increase of nearly $1.7 million from November 2016, when collections totaled $33.4 million.

Still, overall collections totaled about $800,000 less than the total for November 2014, before oil prices spiraled downward, producing an economic slowdown that, in the past seven months, has shown signs of easing.

The past three Novembers, Oklahoma City has received $35.7 million, $34 million, $33.4 million and, this month, $35.1 million.

Final figures take into account the Oklahoma Tax Commission's processing fee and interest.

Under a change in state law, the Tax Commission's processing fee dropped from 1 percent to a half-percent between November 2014 and November 2015.

November sales taxes are based on retail activity the last two weeks of September and first two weeks of October.

December sales tax will cover the monthlong period through mid-November, just before Thanksgiving and the beginning of the traditional holiday shopping season.

January's results will reflect retailing through the first three weeks of holiday shopping.

City finance officials will be watching closely for indications of the impact online shopping will have on this season's results.

Oklahoma cities rely on sales tax to cover dayto-day expenses.

In Oklahoma City, about two-thirds of those expenses are for police and fire protection.

A measure to allow cities to fund some public safety services with property tax revenue failed to advance in the Legislature last spring.

In September, though, Oklahoma City voters agreed to increase the local sales tax by a quartercent.

The city council promised to spend the proceeds, about $26 million per year, to hire additional police officers and firefighters.

Adding the quartercent for public safety will raise the city's sales tax rate above 4 cents for the first time, to 4.125 percent.

The state levies an additional 4.5 percent sales tax.

When the new sales tax rate takes effect Jan. 1, the overall rate in most of Oklahoma City will be 8.625 percent.

It will be slightly higher in Canadian and Cleveland counties, where a countywide sales tax is collected.