Sales tax collections are down in Oklahoma, the Tulsa metropolitan area, and across most of Rogers County.

The Oklahoma Tax Commission reported June 18 that $106,416,618 in sales tax collections was returned to 505 municipalities reflecting a decrease of $4,595,610 compared to June collections last year, a 4.14 percent drop. The June report primarily represents local tax receipts from April business.

Rogers County sales tax collections for the same time period were $763,829, down from $797,374 last year, a decrease of 4.2 percent.

With the fiscal year ending June 30, decreasing sales tax revenues means tighter budgets for next year.

Not all the news is bad. Owasso reports that FY 2008-09 sales tax and use tax revenues are predicted to exceed projections by 5 percent growth despite a year of national economic downturn.

According to the Owasso City Manager’s report issued June 12, the new budget year “will most likely have the smallest revenue growth this city has seen in several years ... but still growth.”

Though residential building permits for new construction in Owasso were down in January as compared to last year, an increase through May brought building permits issued in 2009 to 131 as compared to 133 issued through May 2008. Incremental growth is still anticipated in that area. Some of that residential development falls in Rogers County.

The majority of sales tax collected within Owasso city limits benefits Tulsa County.

Investment by national retailers in Owasso could boost sales tax and the overall economy of the community. A new JC Penney opened Feb. 27 on North 121 East Avenue. The Wal-Mart Supercenter on East 96th Street North has expanded, and a Neighborhood Market is coming to town.

“Where Albertson’s grocery store closed, a Wal-Mart Neighborhood Market is going in,” said Owasso Assistant City Manager Sherry Bishop. “It is scheduled to open in July.”

Catoosa also reported an increase in sales tax income over the course of the year.

Claremore and Tulsa, however, have struggled, reporting declining sales tax revenue in recent months. Tulsa sales tax dropped by 8 percent in May compared to 2008 figures and by 7.5 percent in June compared to the same time period last year. Those declines have sharply affected the city’s budget.

Tulsa passed a new city budget last week. There will be no reduction in the fire or police departments, according to Tulsa Mayor Kathy Taylor She said the tax revenue difference is in development.

“They (Owasso and Catoosa) have recently added new residential and retail,” said Taylor. “They have more space to develop. Rooftops provide retail.”

Taylor said not all states require municipalities to operate primarily on sales tax as we do in Oklahoma.