State sales tax filings up 20.5 percent in February

Texas state sales tax revenue totaled $3.23 billion in February, and after adjusting for sales tax filings delayed last year by Winter Storm Uri, were 20.5 percent above taxes collected the previous year.

“State sales tax collections continued to surge and reached an all-time February high, with receipts from all major economic sectors coming in well above year-ago levels,” Texas State Comptroller Glenn Hegar said. “Business and consumer spending remain robust, with receipts from most sectors having strongly surpassed pre-pandemic levels.”

Hegar said the strongest growth was in receipts from sectors driven by business spending, “with the largest increase in receipts from the oil and gas mining sector, although receipts in that sector remain below pre-pandemic levels.”

Sales tax receipts from the construction, manufacturing and wholesale trade sectors continued to exhibit double-digit growth from a year ago, Hegar said.

“In the retail-trade sector, double-digit growth continued in receipts from home improvement and electronic shopping, segments that have been boosted by pandemic spending patterns,” he said.

Restaurant receipts continue to lag, but Hegar noted that in February 2022 showed double-digit gains compared to last year.

Big increases also were recorded in February from entertainment venues and ticket vendors as people returned to attending sporting, music and live events.

Here’s how the major sectors broke down in February:

– Motor vehicle sales and rental taxes — $475 million, up 28 percent from February 2021.

– Motor fuel taxes — $301 million, up 5 percent from February 2021.

– Oil production tax — $484 million, up 67 percent from February 2021.

– Natural gas production tax — $319 million, up 182 percent from February 2021.

– Hotel occupancy tax — $42 million, up 56 percent from February 2021 after adjusting for late filers.

– Alcoholic beverage taxes — $115 million, up 37 percent from February 2021 after adjusting for late filers.