Estimated Tax Effects The activities of the aerospace industry in turn produce significant additional tax revenue for state and local governments in the region. Revenue estimates are detailed in Figure 26 and reflect estimates of tax payments made directly by firms in the aerospace industry and their workers. Estimates include taxes paid on the purchases of taxable goods subject to both sales and use tax, motor vehicles, and real and personal property. Greater OKC Region Aerospace Industry – 2025
Figure 26. Estimated State & Local Tax Revenue - Aerospace Sector (2025) Type of Tax Tax Revenue ($Mil) % of Total Tax Revenue Personal Income Tax $174.5 42.2% Corporate Income Tax 8.9 2.2% Motor Vehicle Tax 12.8 3.1% Real and Personal Property Tax 19.8 4.8%
Sales and Use Tax: State
105.4
25.5% 22.2% 47.7%
Local
91.7
Total Sales and Use Tax
$197.1 $413.1
Total State and Local Tax Revenue
100.0%
Source: Bureau of Economic Analysis, Oklahoma Tax Commission, and RegionTrack estimates
The tax estimates are derived using average tax shares using an input-output model for the 10-county Greater Oklahoma City region and historical estimates of tax shares from the Census Bureau and the Oklahoma Tax Commission. The tax scenario is based on the labor income specified at the industry level for each of the major groups comprising the aerospace industry. 25 In total, the activity generated directly by the industry is expected to produce an estimated $413 million in tax payments to state and local government in 2025. This equates to approximately 4.7% of total direct output generated by the industry. Again, it is important to note that the estimated tax effects are gross measures and do not account for public or private costs associated with the aerospace sector such as tax exemptions or incentives. 26 The largest source of tax revenue is an estimated $197 million in sales and use tax revenue, which comprises a little more than half the total tax revenue generated by the aerospace sector. Sales and use tax revenue received by the state is 26% ($105 million) of total revenue while sales and use tax received by local taxing jurisdictions ($92 million) is 22% of total taxes generated. 25 Labor income is specified individually for Tinker AFB and the FAA Center in the model using military-federal government and non-military federal government, respectively. Other government providers are assumed to reflect non-military federal government activity. The remaining sectors are specified using the most representative private industry sector. 26 For example, the tax estimates are not adjusted for the state Aerospace Industry Engineer Workforce Tax Credit (for either employers or employees) or other state tax credits the firms may be eligible for. Motor vehicle taxes received by the state total an estimated $12.8 million, or 3% of total taxes generated by the sector. Real and personal property taxes to local government total an estimated $19.8 million in 2025. Corporate income tax is the smallest source of added tax revenue and generates an estimated $8.9 million in 2025. The tax estimates are derived using average tax shares using an input-output model for the 10-county Greater Oklahoma City region and historical estimates of tax shares from the Census Bureau and the Oklahoma Tax Commission. The tax scenario is based on the labor income specified at the industry level for each of the major groups comprising the aerospace industry. 25 In total, the activity generated directly by the industry is expected to produce an estimated $413 million in tax payments to state and local government in 2025. This equates to approximately 4.7% of total direct output generated by the industry. Again, it is important to note that the estimated tax effects are gross measures and do not account for public or private costs associated with the aerospace sector such as tax exemptions or incentives. 26 The largest source of tax revenue is an estimated $197 million in sales and use tax revenue, which comprises a little more than half the total tax revenue generated by the aerospace sector. Sales and use tax revenue received by the state is 26% ($105 million) of total revenue while sales and use tax received by local taxing jurisdictions ($92 million) is 22% of total taxes generated. The second largest source of revenue is personal income tax payments to state government of approximately $175 million, or more 40% of total taxes generated. Personal income taxes represent approximately 4.4% of the estimated $3.96 billion in total annual labor income earned directly by workers in the aerospace industry.
Greater OKC Region Aerospace and Aviation - 2025
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