State sales tax revenue totaled $3.9 billion in January | texasinsider

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“State sales tax collections in January hit a new monthly record, with revenue from nearly all major economic sectors surpassing year-earlier levels.”

Texas Insider Report: AUSTIN, Texas – Texas Comptroller Glenn Hegar said today that the state’s sales tax revenue was $3.85 billion in January, up 25.3% from January 2021 The majority of January sales tax receipts are based on sales made in December and remitted to the agency in January.

Year-over-year increases in most tax revenue continue to be affected by base effects: tax revenue in 2021, to which this year’s revenue is compared, has been suppressed by the pandemic. Compared to January 2020, sales tax collections increased by 24.9%.

“State sales tax collections in January hit a new monthly record, with revenue from nearly all major economic sectors surpassing levels from a year ago,” Hegar said. “Fueled by continued strength in business and consumer spending, revenues in most sectors have significantly exceeded pre-pandemic levels.

“Business spending led to double-digit increases in revenue from oil and gas extraction, manufacturing, wholesale trade and construction, with revenue coming solely from oil extraction and gases remaining below pre-pandemic levels.

“A strong Christmas shopping season continued to drive double-digit increases in retail revenue. The largest increases came from clothing and accessories stores and health and personal care stores. Revenues from general merchants also showed very strong growth, particularly from big-box retailers and department stores in malls.

“Restaurant revenues, a sector still depressed a year ago, have risen sharply again and well above pre-pandemic levels.”

Total sales tax revenue for the three months ending January 2021 increased 23% from the same period a year ago and 21.7% from 2020. Sales tax is the main source of state funding for the state budget, accounting for 59% of all tax collections.

Texas collected the following revenues from other major taxes, most of which were up sharply from a year ago due to base effects:

  • motor vehicle sales and lease taxes – $480 million, up 18% from January 2021 and 2% from January 2020;
  • fuel taxes – $296 million, up 1% from January 2021 and down 4% from January 2020;
  • Oil Production Tax – $427 million, up 68% from January 2021 and 8% from January 2020;
  • natural gas production tax – $369 million, up 260% from January 2021 and 182% from January 2020;
  • hotel occupancy tax – $49 million, up 83% from January 2021 and 19% from January 2020; and
  • liquor taxes – $140 million, up 49% from January 2021 and 8% from January 2020.

For more details on all monthly collections, visit the Monthly monitoring of state revenues by the comptroller. For a detailed history of tax policy developments and fees since 1972, visit our update Sources of income publication.

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