Muskogee sales tax revenue rides surgea

Muskogee continued to experience growth from sales tax collections, a primary revenue stream that supports fire and police protection along with a variety of other municipal services. 

Data compiled by the Oklahoma Tax Commission show the city received more than $2.33 million in sales tax in October. That represents a 7.36% increase, or $171,645 up from the $2.16 million disbursed during the same period in 2020.

October sales tax disbursements primarily represent local tax receipts from August business. The totals include taxes collected on actual sales reported by businesses required to file electronically from Aug. 16 to Aug. 31 and estimated sales from Sept. 1 through Sept. 15.

Muskogee County’s share of sales tax disbursements in October totaled $489,442, up 8.04% from the $450,091 it received for the same month in 2020. The October disbursement of use tax revenue into Muskogee County coffers totaled $73,031, up 6.18% from the $68,516 deposited a year ago.

City Manager Mike Miller said the consistently strong numbers during the past few months reflects the "high quality of the retail options" available to consumers in Muskogee. He said residents seem to recognize the importance and value of "shopping local" and there are "some good businesses that are doing well" as a result.

"I think our citizens understand the importance of shopping local and everything that makes our community great," Miller said. "We have seen some strong numbers throughout the first quarter, and I think that is a reflection of the strength of our local economy."

During the first four months of fiscal year 2022, sales tax revenue flowing into Muskogee’s municipal coffers totaled $9.65 million. That represents a 6.31% year-to-date increase when compared with the $9.06 million deposited during the first four months of fiscal year 2021, which ended June 30.

Muskogee's use tax receipts in October were up 7.14% from those reported for the same period in 2020. Use tax disbursements to the city totaled $288,801, up $20,609 from the $268,191 deposited a year ago.

Use tax revenue, which can swing wildly from month to month, is generated primarily by purchases of out-of-state goods for in-state use or consumption. City councilors have directed that up to $1.2 million of the 4% use tax collected annually be spent solely for economic development purposes.

Revenue from the 4% municipal sales tax — along with tobacco and franchise taxes — make up just more than half of the city’s general fund.

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