Texas economy

HEGAR: Strong Texas Economy Pushes State Sales Tax Revenue Up 13% From August 2021 | texasinsider

“Economic growth and inflation have led to higher sales tax collections as demand remains strong and businesses and consumers continue to pay high prices for goods.”

Texas Insider Report: AUSTIN, Texas – Sales tax revenue for the three months ending August 2022 was up 14.7% from the same period a year ago, and “revenue continues to exceed even our most recent forecast as tax collections from all funds ended the year $841 million above projection. in our estimate of certification revenue. Texas Comptroller Glenn Hegar said earlier today, releasing state revenue totals for fiscal year 2022 while announcing the state’s monthly revenue for August.

 

“To put it into perspective, only five times since 1988 has the rate of growth in tax revenue from all Texas funds exceeded the prior fiscal year by double digits — and those increases have ranged from 10 to 13 percent.

“This year’s growth rate was almost double the previous record at the time,” Hegar said.

Sales tax is the state’s largest source of funding for the state budget, accounting for 56% of all tax revenue.

  • General revenue revenue for fiscal year 2022 totaled $76.47 billion, up 26.4% from fiscal year 2021.
  • Revenue from all funds was $183.34 billion, up 7.5% from fiscal 2021.
  • Tax revenue from all funds was $77.21 billion, up 25.6% from fiscal 2021.
  • Sales tax revenue was $42.97 billion, up 19.3% from fiscal 2021.
  • Motor vehicle sales and leasing tax revenue was $6.45 billion, up 12.5% ​​from fiscal 2021.
  • Franchise tax revenue was $5.67 billion, up 25.2% from fiscal 2021.
  • Oil production tax revenue was $6.36 billion, up 84.4% from fiscal 2021.
  • Tax revenue from natural gas production was $4.47 billion, up 185% from fiscal 2021.

Hegar also said state sales tax revenue totaled $3.77 billion in August, up 13% from August 2021.


“Over the past several months, economic growth and inflation have led to increased sales tax collections as demand remains strong and businesses and consumers continue to pay high prices for goods,said Hegar.

The Economic Stabilization Fund (ESF) and the State Highway Fund (SHF) both receive funds from oil and natural gas severance taxes. Within 90 days, the Comptroller’s Office will deposit $3.64 billion into each of these funds, up from $1.46 billion deposited into each fund in November 2021.

The majority of sales tax revenue for the month of August is based on sales made in July and remitted to the agency in August.

 

“The strong growth in August came from revenue paid by the oil and gas mining sector, which was up nearly 80% from a year ago,” he added. Hegar said.

“Revenue from the construction, manufacturing and wholesale trade sectors posted double-digit growth for the ninth consecutive month, demonstrating continued strong spending by state-owned enterprises.

“Revenue across nearly all segments of the retail industry was up from a year ago, with online shopping and grocery store sales leading the way. Restaurant receipts also increased compared to last year.

“Revenues in the Sporting and Leisure Stores and Clothing and Accessories Stores segments were down slightly from their August 2021 totals.”

Total sales tax revenue for the three months ending August 2022 was up 14.7% from the same period a year ago.

Texas collected the following revenues from other major taxes:

 

  • motor vehicle sales and lease taxes – $651 million, the highest monthly collections on record, up 4% from August 2021;
  • fuel taxes – $320 million, down 3% from August 2021;
  • oil production tax – $609 million, up 50% from August 2021;
  • natural gas production tax – $525 million, up 144% from August 2021;
  • hotel occupancy tax – $69 million, up 6% from August 2021; and
  • liquor taxes – $145 million, up 7% from August 2021.

For details of all monthly collections, see the Comptroller’s Monthly State Revenue Watch.. For a detailed history of the evolution of tax policy and fees since 1972, visit our updated income streams post.