Texas Comptroller Glenn Hegar said state sales tax revenue totaled $3.41 billion in October, a whopping 25.2 percent increase over last year.
The majority of October sales tax revenue is based on sales made in September and remitted to the agency in October.
“October state sales tax collections again strongly surpassed pre-pandemic levels, reaching a new monthly high,” Hegar said. “Tax receipts from most major economic sectors were up by double-digit percentages from a year ago, indicating continued brisk spending by both businesses and consumers.”
Hegar said tax collections from the oil- and gas-mining sector more than doubled from a year ago, while exploration and drilling activity remains at a pace little more than half that of the pre-pandemic months.
Strong construction, manufacturing and wholesale trade sector receipts persist despite ongoing supply chain issues.
“Receipts from the retail trade sector showed some signs of a shift in consumer spending patterns back toward pre-pandemic norms,” Hegar said. “As Texans increasingly venture away from home for entertainment, shopping and resumption of office work, remittances from sporting goods stores declined from last year’s record levels, while those from ticket sales for live entertainment venues rose.”
Total sales tax revenue for the three months ending in October 2021 was up 21.9 percent compared to the same period a year ago and 28.6 percent compared to 2019. Sales tax is the largest source of state funding for the state budget, accounting for 59 percent of all tax collections.
Here are the leading tax revenue streams and how they fared:
– Motor vehicle sales and rental taxes — $543 million; up 19 percent from October 2020, and up 12 percent from October 2019.
– Motor fuel taxes — $322 million, up 12 percent from October 2020, and up 3 percent from October 2019.
– Oil production tax — $410 million, up 105 percent from October 2020, and up 18 percent from October 2019.
– Natural gas production tax — $258 million, up 356 percent from October 2020, and up 206 percent from October 2019.
– Hotel occupancy tax — $54 million, up 63 percent from October 2020, and up 9 percent from October 2019.
– Alcoholic beverage taxes — $130 million, up 47 percent from October 2020, and up 11 percent from October 2019.
