Sales tax revenue growth continues, at a slower pace, in Oklahoma City

Sales tax revenue growth slowed in February but extended to 22 months a streak of consecutive monthly gains.

Oklahoma City received $40.6 million, up 8.2 percent from February 2018, in part due to gains from the quarter-cent sales tax increase that took effect 13 months ago.

Budget Director Doug Dowler said underlying economic activity, as reflected in sales tax collections, was up 1.65 percent.

Underlying growth slowed from 4.7 percent in January and fell short of projections for 2.5 percent growth in the quarter.

Sales tax is Oklahoma City's single-largest revenue source, supporting services including police and fire protection.

February sales tax is based on collections the last two weeks of December and estimated collections the first two weeks of January.

Eight months into the fiscal year, collections for the general fund, the primary account for day-to-day expenses, are $1.7 million, or 1 percent, above projections.

Use tax revenue revenue totaled $7.8 million, up 43.3 percent from February 2018. Sales tax on online retail is categorized as use tax, and budget analysts say the increase is driven to a significant extent by online sellers complying with laws to collect and remit sales tax.

A wild card in projections is sales tax on marijuana.

The city collects 4.125 cents in tax on each dollar spent on legal marijuana sales.

The Oklahoma Tax Commission is developing reports to show how much sales tax municipalities are realizing from marijuana.

Revenue from a 7 percent state tax on marijuana sales increased from $20 in October to $305,265 in January.