By Conrad Dudderar
Yukon sales tax revenues grew significantly in October compared to the same month last year, and they’re up nearly 4% overall over the first four months of fiscal year 2023-24.
The City of Yukon on Oct. 6 received a $2,489,773.06 distribution of sales tax collections from the Oklahoma Tax Commission, which primarily represents local tax receipts from August business.
That amount is 6.8% more than the $2,332,299.27 distribution in October 2022. Yukon rebounded after seeing a slight drop in sales tax receipts for September.
“We have to be so vigilant with our sales tax,” Yukon Mayor Shelli Selby reminded Yukon residents. “Every penny counts in this economy. Every time you shop south of 10th Street, you are taking money away from Yukon and our ability to pay salaries, and fix roads and equipment.”
Selby reminded Yukon residents to spend their sales tax dollars at businesses inside Yukon’s city limits.
“Please remember to shop Yukon … that means north of 10th Street,” she stressed.
N.W. 10th is the south border of Yukon city limits. All sales south of 10th Street raise tax revenue for the City of Oklahoma City.
On the north side of 10th Street along Garth Brooks Boulevard, Yukon city leaders believe the opening of businesses like Ground Control trampoline park, Mardel Christian & Education store, Bath Sorbet, Crumbl Cookies, 7Brew, and HTeaO will spur more sales tax revenue growth.
Through the first four months of FY23-24, Yukon’s sales tax collections have increased 3.9% over the first four months of FY22-23 – from $9,478,101 to $9,849,576.
Sales tax is the primary revenue source for Oklahoma’s municipalities, funding local government operations.
The City of Oklahoma City is the largest municipality in Canadian County – both in terms of population and sales tax collections.
For October, the City of Oklahoma City received $3,140,311.03 in sales tax revenues within Canadian County – a 9.3% increase over the $2,873,474.73 received in October ’22. That follows a 1.6% year-over-year increase in September and 20.6% in August.
The City of Yukon has a 4% local tax rate.
The City of Oklahoma City has a 4.125% local tax rate.
FOUR UP, FIVE DOWN
Across Oklahoma, the Oct. 6th disbursement of $207,360,122 in sales tax collections returned to the cities and towns reflected an increase of $7,895,811 (4%) from the $199,464,333 distributed to them in October 2022.
Yukon and Oklahoma City are among nine municipalities inside Canadian County that receive sales tax distributions monthly from the Oklahoma Tax Commission.
Six municipalities saw increases this October compared to October ‘22:
- Calumet – 12.9%
- El Reno – 17.6%
- Geary – 42.5%
- Oklahoma City – 9.3%
- Piedmont – 23.9%
- Yukon – 6.8%
The other three municipalities had decreases in the year-over-year comparison:
- Mustang – 1%
- Okarche – 59.9%
- Union City – 6.5%
Meanwhile, the October use tax disbursement to cities and towns across Oklahoma totaled $35,658,606.
The City of Yukon saw an 6.2% decrease in use tax revenues – from $330,414.11 in October ’22 to $311,110.68 this month.
A use tax is a tax on goods or services that generally would be subject to sales tax, but the sales tax was not collected or was under-collected. Use taxes often apply to online or out-of-state purchases.
In county returns for October, Oklahoma’s 77 counties shared in a $354,348,494 sales tax disbursement and a $6,470,020 use tax disbursement.
Canadian County experienced an 8.4% increase in sales tax collections between October 2022 ($851,978.24) and this October ($923,295.15). That follows a 6.1% year-over-year jump in September.
Year-to-date in FY23-24, Canadian County’s cumulative sales revenues are up 6.1% over the same period in FY22-23 – from $3,396,646 to $3,604,577.
Canadian County’s .035% countywide sales tax is earmarked to fund operations at the Gary E. Miller Children’s Justice Center.
Canadian County’s use tax distribution was $167,394.94 for October, a 20.8% decrease from $202,289.87 in October ’22.