Another Sales Tax Drop
Tulsa, OK – The preliminary report from the Oklahoma Tax Commission regarding sales collections for the City of Tulsa show revenue sources for general fund operations have declined 11.4 percent from the previous year.
According to the preliminary report, sales tax collections from mid-November to mid-December totaled $16,978,329, an 11.4% drop from $19,170,192 for the same month last year. The collections are in line with the most recent revised revenue projections, said Mayor Dewey Bartlett.
"The continued decline in sales tax confirms the financial crisis the City budget is in, and indicates that we are on the right track with a plan to reduce the general fund expenses by $8 million to $10 million, which would carry over into FY 2011," Bartlett said. "We have asked for scenarios from each department to reduce expenses by 2.2 percent and 4.4 percent. It appears we are looking at the larger end of that range."
Mayor Barlett received revised proprosals for reductions from the Fire and Police departments this week. He will use those proposals to finalize a comprehensive budget plan this month.
Use taxes, which businesses and others pay on purchases of equipment from out-of-state vendors, totaled $1,345,904 for the reporting period, which is a 17.3% percent decline from 1,629,317 for the same period a year ago.
The City of Tulsa has reported 10 consecutive months of sales tax collection declines, including seven months of declines averaging at least 11.25 percent.