Comptroller announces tax revenue

Texas Comptroller Glenn Hegar announced said last Friday that state sales tax revenue totaled $3.68 billion in June, 16.4 percent more than in June 2021.

“State sales tax collections surged in June, outpacing inflation, with strong growth in receipts from all major economic sectors,” Hegar said.

The majority of June sales tax revenue is based on sales made in May and remitted to the agency in June.

As a result of a sustained period of historically high revenues, later this month Hegar will provide an update to the Certification Revenue Estimate published in November 2021.

That update will result in a significant increase in estimated revenue available for the 2022- 23 biennium.

“The strongest growth was in sectors driven primarily by business spending, with receipts from the mining sector nearly doubling collections from last year, and with receipts from the manufacturing, wholesale trade and construction sectors also up sharply,” said Hegar.

Comptroller Hegar continued, “Receipts from restaurants and the services sector were strong once again in June, as consumers continue to spend more on live events with entertainment options becoming available that were not available the last two years.”

“While receipts overall from retail trade were strong, receipts from furniture and home furnishings stores, as well as sporting goods and hobby stores, declined from year-ago levels for the third straight month, another indication consumers are switching spending from goods to services,” he concluded.

Total sales tax revenue for the three months ending in June 2022 was up 12.5 percent compared to the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 59 percent of all tax collections.

Texas collected the following revenue from other major taxes:

• motor vehicle sales and rental taxes — $584 million, down 1 percent from June 2021;

• motor fuel taxes — $323 million, up 3 percent from June 2021;

• oil production tax — $679 million, the highest monthly collection on record, up 87 percent from June 2021;

• natural gas production tax — $439 million, the highest monthly collection on record, up 176 percent from June 2021;

• hotel occupancy tax — $67 million, up 24 percent from June 2021; and

• alcoholic beverage taxes — $150 million, up 9 percent from June 2021.